China's Dominance in the Global Clean Energy Transition

China has solidified its position as the leading force in the global clean energy transition, driven by substantial investments and unparalleled manufacturing capabilities. In 2024, China's clean energy investments reached approximately $625 billion, a figure that represents a significant increase from 2015 and accounts for a substantial two-thirds of global energy transition spending for that year. This strategic financial commitment has propelled China to the forefront of renewable energy development.

The nation's manufacturing prowess is equally dominant, with China producing an estimated 60% of the world's wind turbines and 80% of all solar panels. This large-scale production has been a key factor in reducing the cost of solar technology, making clean energy more accessible globally. Since 2010, the cost of solar modules has decreased by over 90%, a testament to China's industrial efficiency. In 2024, China's new solar capacity additions reached an impressive 333 GW, surpassing the combined total of the rest of the world. By 2024, China held 40% of the global installed solar capacity and 60% of the global wind power capacity.

China's influence also extends to the electric vehicle (EV) sector, where it commands a 60% global market share in EV batteries, with exports growing by 30% year-on-year in 2023. This multifaceted dominance underscores China's comprehensive approach to leading the global energy shift. Furthermore, Chinese companies are at the forefront of innovation, filing approximately 75% of global clean energy patent applications, a dramatic increase from just 5% in 2000.

Despite its leading role, China's rapid expansion has encountered internal challenges, particularly in the solar sector, where oversupply issues have emerged. In the first half of 2025, several major Chinese solar companies reported significant combined losses due to aggressive pricing and overproduction. In response, the Chinese government has urged industry leaders to address these market imbalances and manage competition. This situation has also led to industry consolidation, with smaller manufacturers facing considerable pressure. The global implications of this oversupply are being closely watched, with potential impacts on international pricing and trade dynamics.

Nevertheless, China's contribution to accelerating the global clean energy transition remains undeniable. Its investments and manufacturing scale not only drive down costs but also provide a critical pathway for other nations to adopt cleaner energy solutions. This sustained focus on technological advancement and industrial capacity positions China to continue shaping the future of global energy for years to come.