China clean technology investment and export trends

China is undergoing a significant transition in its clean technology sector, characterized by a shift from subsidy-based models to market-based pricing. This policy change contributed to a 49% drop in Chinese investment in electric transport and sustainable energy during the first half of 2026, resulting in a loss of approximately $133 billion. Consequently, China’s share of global clean tech investment fell from 52% at the end of 2025 to 39% by June 2026.

Despite the decline in domestic investment, China’s clean technology exports continue to have a substantial global environmental impact. In 2025, Chinese exports of solar panels, batteries, wind turbines, and electric vehicles avoided an estimated 374 million metric tons of carbon dioxide, a figure exceeding the United Kingdom’s total annual emissions. These exports, valued at $194 billion, are projected to avoid 6,900 MtCO2 over their operating lifetimes. The large-scale manufacturing in China has lowered electrification costs, particularly benefiting South Asian markets through solar power adoption.