China’s leadership in green tech was well established before Donald Trump returned to the White House and halted his predecessor’s efforts to reassert dominance in the sector. By 2022, China had secured global markets for solar photovoltaic exports, battery storage, wind power components and electric vehicles.

Through deliberate industrial policies, it drove an 80 per cent drop in solar energy costs. This makes China indispensable to global climate efforts.

China’s green ascendancy did not emerge in isolation. Global markets also played a crucial role, with European feed-in tariffs initially driving demand for Chinese solar panels. Yet, geopolitical tensions are reshaping this landscape. American and European supply chain diversification strategies reflect a direct response to China’s growing influence, especially in critical minerals, where it controls 60 per cent of global rare earth mining and 90 per cent of processing.

Despite these challenges, China continues to expand its renewable energy footprint, particularly in the Global South. By 2024, emerging economies had become the largest destination for Chinese electric vehicles, and remain crucial for advancing solar and wind technologies. Projections suggest that emerging economies will lead the global adoption of solar, wind and battery storage by 2030, with China playing a central role.

To sustain its leadership, China must refine its strategy, which currently blends state-led initiatives with market forces, to ensure equitable partnerships across the supply chain. Countries in the Global South do not want to remain relegated to the least profitable or most environmentally damaging roles in the clean energy transition. Growing and sharing the green pie is not just about fairness – it is a strategic necessity for long-term stability.

For China, fostering inclusive partnerships with the Global South offers a clear path forward. Emerging economies like Indonesia, Chile, Morocco and Egypt have positioned themselves as vital players in the green energy supply chain. Indonesia, for example, has secured US$30 billion in Chinese investments related to battery manufacturing by mandating value-added processing of its nickel resources.