China Accelerates Outbound Clean Technology Investment: Cumulative Total Exceeds USD 180 Billion Since 2023
According to the latest research released by the Australian think tank Climate Energy Finance (CEF), Chinese enterprises have committed approximately USD 80 billion in new direct investment to overseas clean technology projects over the past 12 months. Since January 2023, cumulative Chinese outbound investment in green technologies has surpassed USD 180 billion, with capital flows primarily directed toward emerging markets in Asia, the Middle East and North Africa (MENA), Africa, and Latin America.
The report concludes that this large-scale capital outflow is both an inevitable consequence of domestic overcapacity in China’s clean technology sector and a proactive strategic positioning within the global energy transition landscape. Severe supply-demand imbalances in solar PV modules, power batteries, energy storage systems, and critical minerals processing have compelled Chinese firms to redirect excess production capacity overseas in order to sustain profitability and preserve technological leadership across the value chain.
CEF China Engagement Lead Caroline Wang stated:
“China’s clean technology manufacturing sector is currently experiencing a classic structural supply-demand mismatch. Domestic market absorption capacity has failed to keep pace with the rapid expansion of upstream production, making overseas demand the primary channel for relieving overcapacity pressure.”
At the same time, these outbound investments are generating clear compound strategic effects: they alleviate margin compression in the domestic industry and maintain cash flow throughout the supply chain via equipment exports, EPC contracts, and technology licensing; simultaneously, by constructing solar power plants, energy storage facilities, EV charging networks, and mineral processing plants in host countries, China is embedding its technical standards and supply-chain ecosystem deeply into recipient nations’ energy infrastructure, thereby further entrenching its dominant position in global clean technology.
The report specifically highlights that the sharp tariff increases on Chinese PV, battery, and new-energy-vehicle-related products imposed by the second Trump administration have not, as anticipated in Washington, diminished China’s competitiveness in third-country markets. On the contrary, many developing nations, balancing energy affordability, industrial development needs, and climate commitments, have instead accelerated cooperation with China in the clean technology domain. This outcome has introduced fresh uncertainties into the ongoing “de-risking” and “friend-shoring” strategies being pursued by the United States, the European Union, and Japan.
Looking at the longer horizon, China’s integrated overseas deployment of capital, technology, and standards is creating energy systems in emerging economies that are highly dependent on Chinese equipment, components, and financing. While this dependence enables host countries to achieve energy transition and industrial upgrading at relatively low cost in the short term, it may profoundly reshape the global energy geopolitical landscape and technology governance framework over the next decade and beyond.
In summary, China’s outbound direct investment in clean technology has evolved from mere capacity relocation into a multifaceted strategic instrument that simultaneously serves commercial interests, defends domestic market share, and actively shapes the future international energy order.
