China’s Clean Energy Rise: A New Era of Geopolitical Power

In recent years, China is becoming a dominant force in global clean energy through upscaling both their production and consumption of renewable energy. The global transition away from fossil fuels towards renewable energy has allowed China to extend their influence in the energy sector of the global economy.  Between 2019 and 2024, China will account for 40% of global renewable capacity expansion, driven by improved system integration, lower curtailment rates and enhanced competitiveness of both solar PV and onshore wind. Furthermore, their control of critical minerals and supply chains not only gives them leverage in the making of renewable energy, but also on what terms it is distributed. China has also fostered relations with many countries in Asia, Africa, Latin America and Europe through their Belt and Road Initiative. This move by the Chinese government is an economic development strategy to extend their influence and promote Chinese leadership in global affairs. Beijing’s approach in clean energy is a long-term, methodical strategy that is already reshaping global energy sources and creating new forms of dependency.         

China’s dominance in clean energy production is highlighted by the fact that they process 80% of solar panels made and 95% of global polysilicon, ingot, and wafer. These three elements are essential to the formation of clean energy as they help convert sunlight into electricity. China also accounts for a significant portion of wind energy, as they account for more than 50% of the wind farms operating in the world. In addition, China has significant investment in the transportation sector as they produce over 70% of the world's electric vehicles. A total of 17.3 million electric cars were produced in China in 2024 while the European Union, who is the second largest manufacturer, accounted for a total of 2.4 million electric cars made. These examples display the disparity in market share of energy and technology as export-driven growth shapes global markets. However, Chinese dominance over renewable energy is not solely limited to solar panels, wind energy, and electric vehicles—Chinese companies account for two-thirds of global processing capacity of lithium and cobalt. These resources are essential in producing rechargeable batteries used in electric vehicles, laptops, and smartphones. In addition, they are used in superalloys for jet engines, medical implants, and magnets. It has come to a point where if a country wants renewable technology and electric vehicles, they must go through China. 

China’s rise in the clean energy space and extraction of minerals is a reflection of the global shift from oil dependence to renewable alternatives. China’s heavy hand in the extraction of minerals and manufacturing of renewable energy infrastructure gives them strategic leverage in global markets as they can influence developing countries via affordable tech exports. Rather than through political or military directives, China has been able to weaponize interdependence through economic means. Responses from global actors like the United States have resulted in  Chinese investments in generating energy independence and clean energy alternatives through the Inflation Reduction Act. The European Union’s Green Deal is another example of a major actor transforming its economic strategy to reduce emissions and promote sustainability. Global competition in the clean energy space raises the question of who will control the critical resources and technologies of tomorrow? While China is still the largest leader in CO2 emissions, the effects of their pivot towards clean alternatives both within and outside of China signal that their influence has gone beyond the supply chain.