Chinese companies have invested around $80 billion in clean technology projects overseas in the past year, according to a new report from Australian research group Climate Energy Finance (CEF). The surge in investments comes as Chinese manufacturers look for new international markets to absorb excess supply in sectors like solar panels, batteries, and critical minerals processing.
The report shows that since the start of 2023, China’s total overseas direct investments in clean technology have surpassed $180 billion. CEF notes that geopolitical shifts – including tariffs imposed by U.S. President Donald Trump – have pushed many countries to strengthen cleantech cooperation with China, accelerating cross-border project activity.
Chinese firms already dominate global supply chains in solar, batteries, and minerals refining. Their outward investments are helping create new infrastructure markets that can absorb growing production capacity. CEF’s China engagement lead Caroline Wang said the structural mismatch between supply and demand at home is pushing companies to expand aggressively abroad.
Wang added that this shift presents major opportunities for emerging economies looking to reduce reliance on imported fossil fuels. Research from Johns Hopkins University’s Net Zero Industrial Policy Lab shows that 75 percent of China’s low-carbon foreign direct investment now flows to Asia, the Middle East, Africa, and Latin America.
Southeast Asia remained the leading destination for Chinese cleantech manufacturing investments. Although new solar manufacturing commitments slowed due to U.S. tariffs, the region saw increased activity in renewable power, electric vehicles, and battery projects. The Middle East and North Africa recorded the fastest growth, driven by national strategies aimed at diversifying economies away from oil.
CEF observed that Chinese firms are increasingly favouring large, integrated projects that connect upstream and downstream components of the supply chain. Major announcements include an 8.28 billion dollar green hydrogen project by Longi Green Energy in Nigeria and a 6 billion dollar battery factory being built by CATL in Indonesia.
For many emerging economies, the incentive goes beyond energy transition goals. Wang noted that governments do not want to miss out on the global clean technology shift. She highlighted that China leads in innovation, and countries that delay participation in these supply chains risk losing competitive advantages in the next wave of industrial growth.