January 21, 2025
I will arrive in Beijing this evening.
While I was reconnecting with my family, I couldn’t help but reflect on the changes I’ve seen in Beijing over the past year. Beyond the personal warmth of reunions, the city itself tells a story of marvelous resilience, reflecting the strength of the country. Amid the global discourse on Trump's tariffs, particularly targeting China, it is heartening to see one area where China’s industries remain resilient: cleantech This sector stands as a beacon of optimism, yielding China and the Global South an opportunity to drive global progress in sustainable energy and environmental stewardship.
Cleantech Goes to the Global South
The Global South is becoming the dominant market for China’s clean energy exports, including electric vehicles (EVs), solar power, and wind equipment. According to the International Energy Agency, emerging and developing countries are expected to command 70% of the market share in solar photovoltaics and 60% in wind energy and battery storage by 2030. This trend reflects a long-term shift, as these regions increasingly prioritize green energy to support economic growth, urbanization, and electrification.
China’s ability to contribute its cleantech to meet the needs of emerging markets positions it as the go-to partner for sustainable development in the Global South. With advanced technologies, competitive pricing, and scalable production, China has not only filled the growing demand for renewable energy infrastructure, laid the foundation for a more environmentally conscious future, but more importantly, better prepared itself for protectionist tariffs from the U.S.
The Diminishing Role of the U.S. and EU in Cleantech
The declining export significance of the U.S. and EU opens door for China's diversification of its trade relationships, reducing reliance on traditional Western markets. In doing so, China is not only mitigating the risks associated with U.S. protectionist policies but also forging stronger economic ties with emerging nations outside U.S. and Europe. These partnerships hold the potential to redefine global trade dynamics, with cleantech at the forefront of cooperation.
Resilience to Trump Tariffs: A Global South Advantage
The U.S. tariffs would have minimal impact on China’s clean energy industry and export, particularly given the minor role of the U.S. market of clean energy adoption globally. Emerging and developing countries, driven by economic and environmental imperatives, will continue to lead the charge in adopting renewable energy technologies, promising a robust market for China’s cleantech exports.
Leading the World in Environmental Stewardship
The alignment between China and the Global South on cleantech not only strengthens their economic ties but also enhances their role as stewards of the Earth. By accelerating the global energy transition, these regions are setting a powerful example of how economic growth and environmental responsibility can go hand in hand.
In a world that is often preoccupied with the short-term trade policies and neglect of environment, the growth of cleantech in China and the Global South is a refreshing hope of humanity’s potential to rise above challenges and work toward a greener future.