Power Grid

In 2023, China's clean energy exports surged by nearly a fifth compared to the previous year, exceeding $150 billion. This growth reflects Beijing's strategy to reduce energy imports and revitalize the Chinese economy, which has experienced a slowdown. The focus has been on supporting industries like solar panels, electric cars, and lithium-ion batteries.

However, overproduction in these sectors has led to global price declines, causing concern in the United States and Europe about unfair competition from cheap Chinese products. Despite facing challenges such as price wars and low profitability, China's clean energy industry remains dominant, benefiting from integrated value chains, rapid innovation, and government support.

Rising trade tensions could alter trade flows and prompt some Chinese manufacturers to invest outside China, potentially easing criticism and boosting economic growth elsewhere. Notably, Chinese foreign investment reached an eight-year high in the first quarter of the year. However, measures by the United States to exclude Chinese batteries from imports and impose strict rules on electric car buyers could impact Chinese exports.

Similarly, China's solar industry, while dominating the global market, is facing challenges due to lower prices and industry standardization rules. In the electric vehicle sector, Chinese companies like BYD and Nio have become major players, with exports rising significantly. This has led to investigations by the European Union into subsidies received by Chinese companies, which could result in tariffs. Overall, while facing internal challenges, China's clean energy exports continue to grow, impacting global markets and trade dynamics.