China’s economic growth in received a substantial boost from its clean energy sector, with these industries contributing more than a third of the country’s overall GDP growth and over 90% of the increase in investment, according to recent analysis. The sector’s performance underscores China’s commitment to green technologies and its growing influence in the global energy transition.
Clean energy sectors – encompassing solar power, electric vehicles (EVs), batteries, and related technologies – generated a record 15.4 trillion yuan (approximately $2.1 trillion) in , representing 11.4% of China’s gross domestic product. This figure is comparable to the economies of Brazil or Canada, highlighting the scale of the clean energy economy within China. Between and , the sector nearly doubled in real value, and if it were an independent nation, it would rank as the eighth-largest economy globally.
The impact of clean energy on China’s economic performance is particularly significant when considering the country’s overall growth target. Without the contribution from these sectors, China would have expanded by only 3.5% in , falling short of the reported 5.0% growth rate. This demonstrates the crucial role clean energy played in achieving the government’s economic objectives.
The growth rate of clean energy industries is also outpacing the broader Chinese economy. The annual growth rate accelerated from 12% in to 18% in , indicating a sustained and increasing momentum. The “new three” – EVs, batteries, and solar – continue to be the primary drivers of this growth, accounting for two-thirds of the value added and attracting over half of all investment within the sector.
Investment in China’s clean energy sector reached 7.2 trillion yuan ($1.0 trillion) in , significantly exceeding the $260 billion invested in fossil fuel extraction and coal power. This disparity underscores the shift in investment priorities towards cleaner energy sources and reflects a long-term commitment to sustainable development.
While exports of clean energy technologies are growing, the domestic market remains the primary driver of demand for Chinese firms. The value of the domestic market still far exceeds export revenue, suggesting a strong internal demand for these technologies and a potential for further expansion within China.
This substantial investment in clean energy manufacturing represents a strategic bet on the energy transition, both within China, and internationally. The government and enterprises have a vested interest in sustaining this growth trajectory, creating a positive feedback loop for further innovation and investment.
The data also reveals a broader trend of green transformation within China’s economy and society. Tax data indicates an acceleration of this transition during the “14th Five-Year Plan” period (–). The proportion of sales revenue from clean energy power generation has been steadily increasing, demonstrating a structural shift in the energy landscape.
sales revenue from key green products, including new energy vehicles, has experienced an average annual growth rate exceeding 30% during the same period. This growth is fueled by both domestic consumption and increasing export opportunities, solidifying China’s position as a leading manufacturer and exporter of green technologies.
The increasing focus on green initiatives is also reflected in the performance of related financial instruments. The E Fund Yangtze River Protection ETF, for example, saw a rise of 3.02% as economic and social development continued its green transformation. This suggests investor confidence in the long-term prospects of China’s green economy.
The success of China’s clean energy sector has implications beyond its economic impact. It demonstrates the feasibility of decoupling economic growth from fossil fuel dependence and provides a model for other nations seeking to transition to a more sustainable energy future. The continued growth of this sector will likely play a critical role in China’s efforts to meet its climate goals and contribute to global efforts to combat climate change.
