Tuesday, 02 January 2024 12:17 GMT

Chinese firms ramp up overseas investments in clean technology


(MENAFN) Chinese companies have committed approximately $80 billion in overseas investments in clean technology since last year, reports indicate.

According to a recent analysis, during the October 2024–25 period, China solidified its role as "the dominant global investor in clean-energy manufacturing and infrastructure" through disclosed projects in 26 countries. Southeast Asia emerged as the primary manufacturing hub, led by Indonesia and Malaysia, highlighting the region’s growing economic integration with China.

Europe attracted the majority of battery-related investments, while the Middle East and North Africa experienced the fastest growth in clean-tech projects. The report notes that many of these outbound investments favor large-scale, multi-phase projects, reflecting a strategic approach by Chinese firms.

China’s leadership in the cleantech sector is increasingly tied to national economic and political priorities. As the report observes, "Deepening cooperation with the Belt and Road Initiative partner countries has become Beijing’s strategic pillar for building its geopolitical influence in line with its consistent positioning as champion of the Global South to 'better bridge the development gap between the North and the South.'"

The report also highlights that U.S. tariffs under President Donald Trump have added uncertainty, prompting Chinese companies to prioritize long-term risk management through market diversification, focusing on countries with favorable investment conditions and not affected by the tariffs.

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