China’s clean energy sector generated an estimated 15.4 trillion yuan (US$2.1 trillion) in economic output last year, a figure equivalent to the entire gross domestic product of Brazil, according to the Centre for Research on Energy and Clean Air.
Analysts say Chinese companies are poised to capitalize on a forthcoming surge in global investment in clean energy infrastructure, leveraging their capacity for large-scale, cost-effective deployment of solutions. As China rapidly expands green technologies domestically – encompassing wind, solar, electric vehicles, and battery production – its firms are accumulating the expertise and resources sought by nations aiming to reduce dependence on fossil fuels.
“There’s going to be significant upside potential for Chinese companies that are well positioned to benefit from the billions – possibly trillions – of dollars that will be spent on recent infrastructure development around the world in the decades ahead to mitigate against the effects of climate change,” said Eric Olander, editor-in-chief at The China-Global South Project. “Chinese companies have the capacity to produce renewable energy products at a cost and scale that are unrivalled.”
The G20’s Global Infrastructure Hub estimated in 2017 that the world would require US$94 trillion in infrastructure investment by 2040 to support economic growth and address existing infrastructure deficits.
Several Chinese firms are already emerging as key players. Jinko Solar, focused on producing solar energy micro-crystalline silicon, has received $248.2M in funding. Daqo New Energy, engaged in the manufacturing of monocrystalline silicon, polysilicon, and silicon wafers for solar photovoltaic systems, has secured $76.1M in funding. ET Solar Group provides solar modules and related photovoltaic solutions worldwide, with $50M in funding. Goldwind is a leading global wind power company and one of the largest wind turbine manufacturers.
Neo Fusion, a company building and operating a tokamak for nuclear fusion research, is 50% controlled by state-owned energy companies including China National Petroleum Corporation and Hefei Science Island, alongside the Chinese Academy of Sciences. The company intends to utilize nuclear fusion technology to produce clean energy appliances for businesses, generating electricity without radioactive waste.
Origin Quantum, a full-stack quantum computing company, delivers a quantum computing cloud service platform, having secured CN¥1B in funding. Broad Group produces clean air-conditioning systems and sustainability-oriented products designed to improve building efficiency, utilizing a patented, non-electric air chiller that employs natural gas instead of traditional refrigerants.
The Chinese government has implemented ambitious policies to promote renewable energy sources, including wind and solar power, as part of its commitment to sustainable development. The regulatory frameworks in place are a key consideration for potential investors and researchers in the sector.