China Accounts for More Than Half of Global Clean Energy Manufacturing Investment

An analysis of $1.1 trillion in global clean energy manufacturing investments between 2019 and 2025 found that more than half were made by Chinese companies, according to a report by the research firm Atlas Public Policy. China's total investment exceeded $500 billion during the period.

Of that amount, about $136 billion went into clean tech factories outside its borders. The spending reflects a strategy to enter new markets and avoid trade barriers. Only 40 percent of that total came from domestic companies. The research firm stated that this shows dependence on foreign direct investment for the manufacturing sector.

Chinese companies have expanded manufacturing operations abroad as part of the overall investment total. The approach allows access to markets that might otherwise impose trade restrictions on imports. A separate report released this week warned that Europe's trade deficit with China will widen over the long term.

It also noted that Chinese leverage will strengthen as a result. The report was co-authored by a former UK security official. The same report identified what it described as a national security risk for Europe. The analysis indicates that China's clean energy manufacturing investments provide economic benefits and may help countries manage fossil fuel price volatility.