Green technology
Over the past two decades, China has become the global leader in manufacturing green technologies. It occupies dominant positions in the supply chains for solar, wind, batteries, and new energy vehicles. As the largest investor in related manufacturing capacity, China accounted for three-quarters of investment in clean technology production in 2023.
In the eyes of Chinese policymakers, green technologies serve the twin purposes of stimulating economic growth and facilitating the country’s decarbonization. Products such as solar panels and batteries drive growth in exports, and China is investing heavily in its own renewable energy capacity.
Estimates suggest China will account for almost 60 percent of new renewable capacity installed globally between 2023-2028.
Robust market competition and state support have bolstered China’s green tech industries. Private firms such as LONGi, Mingyang, CATL and BYD demonstrate the important role of entrepreneurs in the sector’s success. However, the Chinese government has also provided significant financial support and a home market advantage to local players.
Foreign countries benefit from cheap imports of green technologies, but China's dominance also poses strategic risks. Overdependencies increase the likelihood of China exerting economic coercion and the potential for costly supply chain disruptions. Competition from China also undermines Europe’s industrial ambitions in green technologies.
Graphics dashboard
Chinese policies focus more on green tech
Policy documents show China’s increased focus on green technologies. Documents mentioning electric vehicles, solar and battery lead the pack, corresponding to the prized “New Three” exports. Wind energy follows, with almost 1.5 percent of mentions in 2023. Green hydrogen has appeared more since 2018, indicating a new area of focus.
Chinese venture capital investments in green tech grow, driven by electric vehicle sector
The growth of venture capital activity in green technologies is largely driven by investments in the electric vehicle or battery sectors. Most green technologies are capital-intensive, and therefore have traditionally been less of a focus for venture capitalists.
Electric vehicle (EV) and battery projects are now the main source of Chinese investment in Europe
Investment from China to Europe is now dominated by green tech sectors. While the flow of investments to EU-27 countries and the United Kingdom has declined substantially since 2016, battery and electric vehicle projects account for virtually all new major investments. Hungary is a key beneficiary, capturing 44 percent of all Chinese FDI.
Green technology in China: Timeline of crucial events
Development
Policy/regulation
China Society of Automotive Engineers releases the Energy Saving and NEV Tech Roadmap 2.0, aiming for new energy vehicles (NEVs) to comprise 50 percent of new car sales by 2035.
Oct 2020
China implements a nationwide carbon trading market, starting with the power sector. Initially covering 4.5 billion tons of CO2, it is now the biggest carbon market worldwide.
Jul 2021
China’s renewable energy capacity exceeds 1,000 gigawatts – an energy transition milestone. Renewables make up 44.8 percent of capacity, with hydropower the largest at 37 percent of all renewables.
Dec 2021
The NDRC releases the 14th Five Year Plan for renewable energy. Renewables will make up at least half of electricity generation capacity added in 2021-2025. The plan aims to double solar and wind.
Jun 2023
Sinopec completes China's largest green hydrogen plant in Kuqa, Xinjiang, using photovoltaic power. It will reduce CO2 emissions by 485,000 tons annually by replacing hydrogen from natural gas.
Aug 2023
China’s largest electric vehicle maker BYD says it will build a car factory in Szeged, Hungary. Its first in Europe, the plant is expected to create thousands of local jobs.
Dec 2023
Wind and solar energy capacity surpasses coal for the first time. Non-fossil sources now make up over half of total capacity. But coal still comprised 60 percent of power generated in 2023.
Jun 2024
China’s State Council Information Office declares aim to reach a 2030 carbon peak target and 25 percent non-fossil energy consumption share. Meanwhile, energy demand has reached 1000 kWh per capita.
Aug 2024
Trina Green Hydrogen (天合元氫) begins constructing a 1GW electrolyze production line in the Yangzhou Comprehensive Bonded Zone. This facility represents China’s latest foray into green hydrogen.
Oct 2024
China Southern Power Grid’s total installed capacity over five provinces, including wind and solar, reaches 202 million kilowatts, or 36.6 percent of the total installed capacity in the region.
Feb 2025
China has increased its green hydrogen production capacity to 125,000 mt/year. It now accounts for 50% of global capacity. The National Energy Administration (NEA) plans for further development.
Apr 2025
China's installed wind and solar power capacity reaches 1,482 GW, surpassing its thermal power capacity (1,451 GW) for the first time, according to NEA data.
May 2025
UAE-based company Autocraft signs a USD 1-bn purchase agreement with China's Shi Technology for 350 E20 electric vertical take-off and landing (eVTOL) aircrafts - China's largest single eVTOL order
Jul 2025
Shipments from Tesla Inc.’s Shanghai factory are again declining, with an 8.4% decrease from 2024. Meanwhile in July, overall sales of EVs and hybrids in China grew by 25% to 1.18 m units.
Aug 2025
China’s rare earth magnet exports to the US drop 28.7% month-on-month in September amid trade tensions, threatening critical supply chains for strategic industries.
Oct 2025
The People’s Bank of China raises re-lending for tech innovation and transformation to CNY 1.2 trn, creates a CNY 1 trn re-lending facility for private firms, and launches green overseas-debt pilots.
Jan 2026
Referring to military-civilian dual-use risks and Japan’s stance on Taiwan, China tightens reporting requirements for rare earth exports to Japan, demanding detailed supply chain data.
Jan 2026
Chinese automaker BYD’s first chartered cargo ship “BYD Explorer No.1”, the first domestically built cargo ship to export Chinese cars, departs for Europe.
Jan 2026
Firms led by state-owned China Energy Investment Corp. Ltd create a CNY 10 billion (EUR 1.3 billion) fund for new energy technologies &projects, encompassing solar, wind &hydrogen-based technologies.
Jan 2021
Xi Jinping says China aims to reach peak carbon emissions by 2030 & carbon neutrality by 2060. The 2060 target is ten years later than the G7, EU, South Korea & Brazil and 10 years earlier than India.
Sep 2021
The National Development and Reform Commission (NDRC) releases a strategy to develop the hydrogen sector by 2035, focusing on the transport, energy storage, power and industrial sectors.
Mar 2022
The government extends its 2014 tax exemption policy to promote EVs. EV sales are exempt from the vehicle purchase tax until the end of 2025, and must only pay half until the end of 2027.
Jul 2023
Ningbo Shanshan, the world's largest supplier of electric car battery materials says it will build a new plant in Finland. The plant will serve Western and Central Europe.
Sep 2023
People’s Daily reports: In 2023 Chinese shipbuilders received over half of all global orders for low carbon &pollution ships. An official says China will pursue policies to support green shipbuilding.
Apr 2024
The Ministry of Industry and Information Technology issues draft rules that raise the capital ratio for solar PV manufacturing projects and need plants to operate at least 50% of annual capacity.
Jul 2024
China has surpassed 10 m total EV charging points, a milestone that signifies its early and continual state-led development of the EV industry.
Aug 2024
The MIIT issues a plan for the large-scale use of green hydrogen in metallurgy, synthetic ammonia, synthetic methanol and refining, and its application in other sectors by 2027.
Dec 2024
Saudi Arabia and the UAE have become new markets for large-scale energy storage projects by Chinese firms. BYD Energy Storage signs a 12.5 GWh battery storage project with Saudi Electricity Company.
Mar 2025
The NEA releases its first guidance on the development of virtual power plants (VPPs), which aggregate and distribute green energy, aiming for 20 million kw by 2027 and 50 million kw by 2030.
Apr 2025
China’s largest green hydrogen ammonia integration project has launched its first phase in Chifeng, Inner Mongolia, with an annual output of 320,000 tons of green synthetic ammonia.
Jul 2025
State-owned China Huaneng Group and Dongfang Electric Corp. announce a prototype for a floating offshore wind turbine capable of generating 17 MW of electricity, highlighting Chinese-made components.
Aug 2025
Upon the European Commission’s investigations into Chinese suppliers over subsidies, German company Lucara plans to substitute wind turbines from China’s Ming Yang Smart Energy with Siemens turbines.
Aug 2025
17 major silicon material companies merge into a consortium to tackle involution after China’s solar power production capacity had exceeded demand by over twofold for nearly two years.
Nov 2025
China’s PCG Power and UK’s Octopus Energy form a joint venture, Bitong Energy, to trade renewable energy in China, aiming for an output of up to 140 TWh and profits of around GBP 50 m/year by 2030.
Jan 2026
China extends anti-dumping duties on solar-grade polysilicon imports from the US and South Korea, with company-specific tariffs ranging from 55.3-57% for the US and 4.4-113.8% for South Korea.
Jan 2026
Recent developments
- China has directed financial institutions to expand green finance and credit investment for tech innovation and tech transformation to support its “dual carbon” (双碳) goal. Priority lies in loan flexibility for zero-carbon projects, industrial projects, and innovation in “stranglehold” (卡脖子) technologies. This is underscored by the People’s Bank of China raising its low-cost, targeted funds to commercial banks for tech loans to CNY 1.2 trillion and creating a CNY 1 trillion re-lending facility for private firms. (Source (CN): gov.cn, STDaily, January 16, 2026)
- China’s PCG Power and UK-based energy supplier Octopus Energy have formed a joint venture to trade renewable energy in China. The new JV, Bitong Energy, aims to trade up to 140 terawatt hours of renewable energy and expects to generate profits of around GBP 50 million annually by 2030. (Source (EN/CN): Reuters, Yicai, January 30, 2026)
- China is extending anti-dumping duties on solar-grade polysilicon imports from the US and South Korea for five years, with company-specific tariffs ranging from 55.3 – 57 percent for US firms and 4.4 – 113.8 percent for South Korean firms. MOFCOM had claimed that not renewing measures would harm China’s polysilicon industry. (Source (CN): gov.cn, January 13, 2026)
- Chinese automaker BYD’s first chartered cargo ship, the “BYD Explorer No.1,” has departed for Europe. It was built by China International Marine Containers Group Co. (CIMC), making it the first domestically built cargo ship to export Chinese cars – part of Beijing’s self-reliance efforts. The ship can carry 7,000 cars, as BYD is accelerating its EV exports. (Source (CN/EN): CIMC, Bloomberg, January 10, 2026)
- China is implementing stricter reporting requirements for rare earth exports to Japan, demanding detailed supply chain data, citing military-civilian dual-use risks and the need to respond to the Japanese prime minister’s provocative statements about Taiwan. (Source (CN): EET, January 19, 2026)
- 17 major silicon material companies are merging into a consortium to streamline operations and tackle involution after China’s solar power production capacity exceeded demand by over twofold for nearly two years. (Sources (CN): Caijing, November 6, 2025)
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