What's happened
China continues to lead in renewable energy exports, with record solar panel shipments and surging electric vehicle sales. Falling prices and rising demand in emerging markets are fueling this growth, while competitors struggle to keep pace. The global energy transition increasingly depends on Chinese technology.
What's behind the headline?
China's export surge is reshaping the global energy landscape. The country’s ability to reduce costs—solar panels down over 80% in ten years and batteries below $100 per kWh—has made its products highly competitive. This has led to a significant export increase, especially to Southeast Asia, Africa, and Latin America, where demand for low-cost clean tech is soaring.
However, this rapid growth comes with challenges. The price war in solar industry has caused export values to decline in dollar terms since 2023, despite volume increases. This indicates a race to the bottom that could threaten long-term profitability. Meanwhile, Western nations and Japan are struggling to secure a foothold in this market, with limited capacity to match China's scale.
The story underscores China's strategic focus on becoming the backbone of the new energy system, leveraging cost reductions to dominate emerging markets. This will likely accelerate the global shift to renewables but may also deepen geopolitical tensions over technological dominance and trade practices.
What the papers say
The Japan Times highlights China's clear leadership in exports of electric vehicles, solar panels, and batteries, noting that these technologies are becoming the foundation of the new energy system. Bloomberg emphasizes China's record solar panel shipments and the ongoing price wars that challenge the sustainability of its export growth. South China Morning Post provides detailed insights into how falling prices are driving demand in developing countries, with exports to Southeast Asia, Africa, and Latin America surging. The articles collectively portray China as the dominant force in renewable tech exports, with a strategic advantage rooted in cost reductions and economies of scale, despite some market value declines due to price competition.
How we got here
Over the past decade, China has heavily invested in renewable energy technologies, driving down costs and expanding exports. Its dominance is reinforced by government policies and economies of scale, making Chinese solar panels, batteries, and EVs the most affordable globally. Meanwhile, Western and Asian competitors face price wars and market share losses.
Go deeper
- How are Western countries responding to China's dominance?
- What are the long-term implications for global energy markets?
- Will falling prices lead to a sustainable profit model for Chinese exporters?
Common question
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How is China surpassing the US in clean energy exports?
China is rapidly expanding its leadership in clean energy exports, outpacing the US in key sectors like electric vehicles, solar panels, and batteries. This shift is reshaping global energy markets and raising questions about future competition. Below, we explore how China is achieving this, what it means for the world, and what the US's next moves might be.
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Why is China leading the world in green tech exports now?
China's rapid rise in renewable energy exports has caught global attention. From record solar panel shipments to surging electric vehicle sales, China is transforming the energy landscape. But what’s driving this dominance, and what does it mean for the future of global energy markets? Below, we explore the key reasons behind China's green tech boom and what other countries are doing to keep up.
More on these topics
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China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.