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Source: AI-generated |
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Overview of Beijing’s green industry |
China is still the world’s largest coal consumer and one the most polluting states. But over the years it has grown its green industry to high levels. So much that today, China is a dominant industrial power in green energy and clean-tech sectors. |
Solar energy. This is a big part of China’s green industry. It has become a world leader in that sector’s production. It produces most of the world’s solar panels. Companies built large factories that can make solar products quickly and cheaply. Because of that, solar power has become more affordable in many states. China’s main customers are Europe, Southeast Asia, and South America. It also increasingly exports in emerging countries. Key companies include LONGi Green energy, Jinko Solar, and Trina Solar. |
EVs. This is another key sector. It evolved from state-supported to globally competitive. The Chinese government helped this industry with subsidies. It also provided support to build charging stations across the country. As a result, millions of EVs are now used in China. These products are also becoming popular abroad. They now compete with global car brands. China’s main customers are Europe, Southeast Asia, and South America. Its key companies include BYD, BIO, XPENG and Geely Auto. |
Batteries and energy storage. Chinese firms control a large part of the global battery supply chain. It dominates in lithium-ion batteries, refining and midstream processing. This gives China an important economic and strategic advantage. Indeed, it is a strategic leverage because batteries are central to EVs, grid storage and renewables. Key actors include CATL, EVE Energy and Gotion High Tech. |
Wind turbines. China is the largest installer and one of the largest manufacturers. Its key companies include Goldwind and Mingyang Smart Energy. It also builds more and more offshore wind farms. |
Solar, batteries, and EVs are called “the new three”. They contribute to the state’s GDP in place of clothing, home appliances and furniture exports that previously drove the growth. |
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How the war benefits China |
The oil crisis that came with the war in Iran pushed many states to boost their green energy. China was already dominant. But demand for its products increased in the past few months. Demand for solar panels doubled. Demand for EVs increased 115% compared to April 2025. Demand for lithium-ion batteries and wind turbines also increased. Total exports rose 70% year over year. |
Risks for importers |
For states that import from China’s green industry, the big risk is to replace one dependence by another. On the long-term they would be less reliant on hydrocarbons. But they will still be subject to supply chain risks and geopolitics. |
Many states now depend a lot on China for green products such as solar panels, batteries, and EVs. Europe is a good example. Most solar panels and lithium batteries in Europe are imported from China. These products are often cheaper and widely available. But this dependence creates risks. |
First there is economic vulnerability. If a state relies too much on China, it may struggle if supply chains are disrupted. This can happen in case of tensions, trade disputes, or global crises. Factories may slow down, exports may be restricted, or prices may increase. This can damage industries that rely on China’s products. China could use its dominant position as leverage. Some states worry that it gives China greater influence over foreign economies and decision-making. Plus, many states fear that it could create security concerns in sensitive sectors such as energy networks and telecoms. |
Another risk is strategic dependence. These products are crucial for many sectors from energy to AI to defense. States that import most of them from China may lose part of their industrial independence. Local companies may find it difficult to compete with low-cost products from China. This could lead to factory closures and job losses. It can weaken local production and reduce innovation. |
Because of these risks, some states are now trying to diversify supply chains. They also seek to increase local production and strengthen industrial policies. The goal is to reduce dependance on China. |
Decoding geopolitics isn’t a job. It’s survival. |
Joy |
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