Research group: China has invested over $100 billion in cleantech overseas since 2023.
According to the Australian Climate Energy Finance group, Chinese companies have invested more than $100 billion in clean energy projects since 2023. They do this in order to avoid tariffs on imports from the U.S.
CEF's research revealed that China was the largest producer and exporter in the world of solar panels, lithium-ion batteries, and electric vehicles. Its investment, innovation, and manufacturing capabilities led the world by "an astonishing margin", the report said.
It accounts for 32.5% global electric vehicle exports and 24.1% lithium batteries, and 78.1% solar panels. But its dominance has raised concerns that it uses its huge capacity surpluses in order to flood the market, drive prices down, and undermine its competitors.
The United States, Canada and the European Union are set to vote this week on whether or not to impose 100% tariffs on electric vehicles made in China. Imports of Chinese lithium batteries and solar panels into the United States are subject to 25% and 50% tariffs, respectively.
The report's co-author and CEF analyst, Xuyang Dong said that the investments made by Chinese private companies were largely motivated by the desire to bypass trade barriers.
She said BYD - China's largest electric vehicle manufacturer - is building a $1billion plant in Turkey in order to avoid an EU proposed tariff of almost 40%. Battery maker CATL plans factories in Germany and Hungary, among other places.
BYD, CATL and other companies did not respond immediately to requests for comments on the Chinese National Holiday.
According to another study by Britain's Grantham Institute published this year, by 2030 two-thirds of China's cleantech production capacity will be "surplus" to the domestic market and seeking export markets. The total solar production capacity is expected to reach 860 Gigawatts.
China is furious at the tariff increases and says that restrictions on cheap Chinese imports hamper efforts to fight climate change.
Liu Zhenmin, a senior Chinese climate envoy, warned in March of the potential for a 20% increase in global energy transition costs if "decoupling" is done from Chinese manufacturing. (Reporting and editing by Muralikumar Aantharaman; Reporting by David Stanway)
(source: Reuters)
