China exports clean technology to developing nations to shape global climate fight

China sent $132 billion in clean technology and investment to the developing world last year, making it a primary contributor to global carbon dioxide reduction.

China used heavy government subsidies to build a massive green manufacturing sector. This allowed the country to dominate global markets for solar panels, batteries, and electric vehicles. A Reuters analysis found that this commercial output nearly matches the total amount of grants and loans provided by all wealthy nations to poorer countries in 2024.

While wealthy nations often provide climate finance as loans that return money to rich countries, China focuses on commercial transactions that drive down prices through industrial scale. These exports help countries in the Global South adopt green energy for economic reasons. In Ethiopia, the government banned combustion engine car imports in 2024 because electric vehicles became the cheapest solution to reduce fuel import costs. Similarly, Pakistan imported 17GW of solar power from China last year to secure reliable power.

Experts note that these exports alone could help developing nations avoid 257 million metric tons of carbon dioxide emissions annually. China remains a major global emitter due to its large population and reliance on coal. While the country has shown little interest in taking a diplomatic leadership role at climate talks, its manufacturing power creates a new pathway for the energy transition.

Some observers suggest that Beijing may hesitate to take bold stances on global carbon reduction to avoid pressure to cut its own fossil fuel use. Meanwhile, wealthy countries like the United States have begun imposing tariffs on Chinese clean technology to protect their own domestic industries.