China has committed more than US$180 billion to overseas clean-technology projects since early 2023, according to new research.
The research shows an acceleration in outbound investment as governments look to secure energy supply and reduce exposure to policy uncertainty in the United States.
A report released on Monday by the China Environment Forum (CEF) shows an 80 per cent increase in Chinese cleantech commitments in a single year. China now dominates global manufacturing and finance for solar panels, batteries, electric vehicles and grid infrastructure, with capital flowing across Asia, Africa, Latin America, the Middle East and parts of Europe.
Many governments are using industrial policy to lock in domestic economic returns. Tools such as fast-tracked approvals, local content rules and import restrictions are pushing Chinese firms to build production capacity, research centres and industrial parks in host markets.
Brazil is developing a net zero industrial park led by Envision Energy and has seen BYD open a US$1 billion electric vehicle plant targeting regional exports. Chile is moving ahead with a US$4 billion grid acquisition and expansion through China Southern Power Grid, while Indonesia has started work on CATL’s US$6 billion battery project covering mining through to recycling.
China’s cleantech push is also extending into Europe, the Middle East and Africa. Spain has broken ground on a €4.1 billion CATL–Stellantis gigafactory.
Saudi Arabia has agreed with Chinese partners to produce 20 gigawatts of solar ingots and wafers a year, while Morocco is preparing a US$5.6 billion battery plant aimed at European and Middle Eastern markets. Nigeria has secured a US$8.27 billion green hydrogen partnership with LONGi, and Chinese-backed wind and hydropower projects have been completed in Laos and Peru.
The CEF report says host countries benefit from lower power costs, job creation and faster emissions reductions, but warns that concentrated inflows raise risks around industrial dependence and policy autonomy.
“China’s cleantech makers are now looking much more to overseas markets, as demand at home stabilises and the global energy transition speeds up. And that’s where the dilemma kicks in,” said Muyi Yang, senior energy analyst at Ember.
“Almost everyone agrees you can’t hit climate goals without working with China,” Yang said, adding that concerns over over-reliance were growing. She argued the priority was diversification, warning that countries delaying domestic industry development risk falling further behind Chinese competitors.