How China Became the World’s Clean Tech Giant

China’s Clean Energy Sector Drives GDP Growth

China’s clean energy sector was the biggest driver of its GDP growth in 2023, contributing 40 percent (around $1.6 trillion) of its economic expansion. The country’s commitment to renewable energy is underscored by its substantial investments in the industry.

Sustainable Development Goals (SDGs)

• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation, and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action

Solar Sector Investments

Take the solar sector as an example. Chinese investments in new photovoltaic (PV) supply capacity over the last 10 years exceeded $50 billion – ten times more than all of Europe. This investment surge has strengthened China’s energy independence and promoted substantial job creation, with over 300,000 manufacturing jobs across the solar PV value chain added since 2011. China now commands over 80 percent share in all manufacturing stages of solar panels, from polysilicon to modules, solidifying its global leadership in solar energy.

Sustainable Development Goals (SDGs)

• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation, and Infrastructure
• Goal 13: Climate Action

Expansion of Wind Power Sector

Moreover, China’s wind power sector continues to expand, evidenced by the addition of 37 gigawatts (GW) in wind capacity in 2022, including significant growth in offshore farms.

Sustainable Development Goals (SDGs)

• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation, and Infrastructure
• Goal 13: Climate Action

Dominance in Electric Vehicle Market

Notably, China’s dominance also extends to the electric vehicle (EV) market. China accounted for nearly 60 percent of global new electric car registrations in 2022. China’s electric cars comprise 29 percent of total domestic car sales, surpassing the 2025 national target well ahead of schedule. The country’s ambitious renewable energy targets outlined in the 14th Five-Year Plan further signal a sustained drive toward cleaner energy solutions.

Sustainable Development Goals (SDGs)

• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation, and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action

China’s Dominance in Renewable Energy Production and Sustainable Transportation Innovation

This piece delves into China’s dominance in three domains: wind power, solar PV technology, and electric and hybrid electric vehicles (EVs and HEVs). It explains how China’s blend of policy initiatives, targeted investments, technological collaborations, and robust in-house research and development (R&D) efforts has propelled the country to the forefront of global renewable energy production and sustainable transportation innovation.

Wind Power

China’s wind power sector has seen remarkable growth since its inception in the mid-1980s when it began importing turbines from Europe. Over time, China has emerged as the world’s largest wind power market, with the country’s manufacturers supplying nearly 60 percent of installed capacity worldwide in 2022, achieved in part due to its more than 40 domestic wind turbine manufacturers.

Particularly notable is the rapid rise of Chinese companies such as Sinovel, Goldwind, and Dongfang, which transitioned from not being in the global top 10 in 2006 to becoming key players by 2009. This transformation was facilitated by strategic partnerships with foreign technology firms, initially through licensing agreements that evolved into co-design relationships as Chinese companies developed their in-house design capabilities.

This unconventional strategy succeeded because foreign technology partners were not manufacturing competitors but specialized technology design houses achieving new business ventures through co-design relationships. By leveraging unconventional transfer strategies and engaging in co-design processes with foreign partners, Chinese firms were able to produce turbines comparable in size and sophistication to global competitors’ offerings. Additionally, strategic acquisitions such as Goldwind’s purchase of German Vensys contributed to building strong overseas R&D capabilities.

Furthermore, government support in the form of R&D grants has enabled Chinese manufacturers to invest significantly in in-house research and development, leading to innovations such as Sinovel’s 5 MW offshore turbine and the establishment of specialized R&D centers like Sinovel’s National Offshore Wind Power Technology and Equipment R&D Center. While local technology agreements with local centers of excellence have not played a significant role for national champions, other Chinese companies have benefitted from such partnerships, contributing to the overall advancement and competitiveness of China’s wind power sector on the global stage.

As a result, according to the Global Wind Report 2023 China accounted for 60 percent of global wind turbine manufacturing capacity in 2023, with Europe in a distant second at 19 percent and the U.S. trailing even farther behind at 9 percent.

Sustainable Development Goals (SDGs)

• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation, and Infrastructure
• Goal 13: Climate Action

Solar PV Sector

China’s solar photovoltaic sector has likewise undergone a significant evolution, transitioning from component supply to production of complete panels and becoming the world’s largest producer of solar PV cells.

This transformation has been driven by a strategic focus on export-oriented technological upgrading, with Chinese companies capturing a more than 80 percent share of the global PV export market in 2023. While initially reliant on foreign markets, the

SDGs, Targets, and Indicators

1. SDG 7: Affordable and Clean Energy

   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix
   • Indicator 7.2.1: Renewable energy share in the total final energy consumption

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.2: Promote inclusive and sustainable industrialization and foster innovation
   • Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita

3. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning
   • Indicator 13.2.1: Number of countries that have integrated mitigation, adaptation, impact reduction, and early warning into primary, secondary, and tertiary curricula

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The SDGs addressed or connected to the issues highlighted in the article are SDG 7: Affordable and Clean Energy, SDG 9: Industry, Innovation, and Infrastructure, and SDG 13: Climate Action.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Under SDG 7, the specific target identified is Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
• Under SDG 9, the specific target identified is Target 9.2: Promote inclusive and sustainable industrialization and foster innovation.
• Under SDG 13, the specific target identified is Target 13.2: Integrate climate change measures into national policies, strategies, and planning.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, there are indicators mentioned or implied in the article that can be used to measure progress towards the identified targets:

• Indicator 7.2.1: Renewable energy share in the total final energy consumption can be used to measure progress towards Target 7.2 under SDG 7.
• Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita can be used to measure progress towards Target 9.2 under SDG 9.
• Indicator 13.2.1: Number of countries that have integrated mitigation, adaptation, impact reduction, and early warning into primary, secondary, and tertiary curricula can be used to measure progress towards Target 13.2 under SDG 13.

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Fuente: thediplomat.com

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