China's technological strategy to become a leader in renewables

BarcelonaChina has clearly become a world leader in renewable energy, both in wind and solar power generation. This is no coincidence. It was a necessity, but also a technological gamble that, in turn, entails economic leadership. It is well known in the sector that the most competitive brands in solar panels are Chinese. But the country led by Xi Jinping has gone further: technology has also made it possible to connect all the production facilities scattered across a vast territory with a digitized, ultra-high-voltage transmission network.

The development of renewable energy in China has a very important aspect for decarbonization. Some data demonstrate this. In January 2013, Beijing was suffocating under a dense layer of pollution that exceeded 900 micrograms of PM 2.5 particles per cubic meter of air, a catastrophic figure according to the World Health Organization (WHO). Twelve years later, in 2025, the Asian giant is emerging as a clean energy superpower.

For Beijing, generating renewable energy is not just about decarbonization. There is also a significant economic factor behind it. This is a power that was heavily dependent on oil and gas, especially Russian. Generating renewables reduces energy costs for companies and, therefore, is a key factor in competitiveness. And this is not a new element; it is a planned element (as befits an economy like China's). However, this leadership is not accidental. It stems from a long-term economic strategy to dominate the main industrial sectors of the 21st century. To this end, Chinese leaders began defining renewable energy as a strategic sector for energy security and global standing in the five-year plan for the period 2006-2010.

Beijing has strived to create a complete production chain for clean technologies, from raw material extraction to the final product ready for installation or export. A planning process in which massive financial support, estimated at around four trillion dollars, has been decisive. Through subsidies and preferential loans, Beijing has boosted the productive capacity of the green industry, enabling it to scale production, reduce costs, and conquer foreign markets with aggressive downward pricing policies that have eliminated any competition. The result is evident in the photovoltaic sector. China controls more than 80% of global solar panel production and exports. This global leadership, driven by an investment effort estimated at one trillion dollars between 2006 and 2024, has decimated international competition. A similar pattern is observed in the electric vehicle sector. Three out of every four units sold worldwide in 2024 came from Chinese factories. The country also accounts for around 80% of global production of lithium batteries for automobiles. Strategic leadership because it means controlling the technological heart of the automobile, since batteries account for 30-40% of the total cost of the vehicle.

In the wind energy sector, the situation is more balanced, but the trend also points to a dominant position. China accounts for more than 60% of global turbine production, and its companies lead the sector worldwide. Europe maintains a competitive position, but the limited financial margin and lack of resources force its companies to import equipment produced in the Asian country.

China, therefore, is undergoing the energy transition, but, in addition, by becoming the world's leading supplier of clean technologies, Beijing is increasing its international influence and fostering its economic development. Proof of this is that the green sector already represents 10% of GDP and acts as a new engine for a country seeking drivers for its economy.

The trade war with Trump

This technological and economic dominance of China in renewables also extends to the trade war with Donald Trump. During his 2014 presidential campaign, the US president promised to boost "American energy dominance" through an aggressive expansion of domestic fossil fuel production. He fulfilled that promise in his second term, while simultaneously eliminating billions of dollars in federal aid for clean energy projects. This has not benefited Americans' wallets. While a gallon of gasoline is slightly cheaper than a year ago, these savings are largely offset by rising electricity costs, with rates increasing at more than twice the rate of general inflation. Furthermore, global demand for US oil, gas, and coal is not keeping pace with global sales of Chinese green energy technology. According to Bloomberg, which uses data from the US Department of Energy, the Energy Information Administration, the Global Development and Competition Commission of China (GACC), and the energy consultancy Ember, Chinese exports of clean energy-related products from the beginning of the year through July totaled [amount missing]. In comparison, the US exported only $80 billion worth of fossil fuel-based energy during the same period.