China's clean energy sector was the biggest driver of GDP growth in 2023, contributing 40% of economic expansion (approximately $1.6 trillion). The country's commitment to renewable energy is highlighted by significant investment in the industry.
Let's take the solar power sector as an example. Over the past decade, investment in new solar photovoltaic (PV) capacity in China has exceeded $50 billion, 10 times more than in all of Europe. This surge in investment has strengthened China's energy independence and facilitated significant job creation, adding more than 300,000 manufacturing jobs across the solar power value chain since 2011. China currently holds a strong position with over 80% share in all manufacturing stages of solar panels, from polysilicon to modules. Demonstrate global leadership in solar energy.
Furthermore, China's wind power sector continues to expand, as evidenced by the addition of 37 gigawatts (GW) of wind power capacity in 2022, including significant growth in offshore power plants.
Notably, China's dominance extends to the electric vehicle (EV) market as well. China accounted for nearly 60% of the world's new electric vehicle registrations in 2022. Electric vehicles in China accounted for 29% of total domestic car sales, significantly exceeding the national target for 2025. The country's ambitious renewable energy targets outlined in the 14th Five-Year Plan further signal a sustained commitment to cleaner energy solutions.
This article explores China's advantages in three areas: wind power, solar power technology, and electric and hybrid electric vehicles (EVs and HEVs). How China's policy initiatives, targeted investments, technical cooperation, and strong internal research and development (R&D) efforts have propelled it to the forefront of global renewable energy production and sustainable transportation innovation. It explains what's going on.
wind power
China's wind power sector has experienced impressive growth since the country began importing turbines from Europe in the mid-1980s. Over time, China has emerged as the world's largest wind power market, with its manufacturers expected to supply nearly 60 percent of the world's installed capacity by 2022, compared to more than 40 domestic wind turbine manufacturers. It's also thanks to the manufacturer.
Particularly noteworthy is the rapid rise of Chinese companies such as Sinobel, Goldwind, and Oriental, which went from not being in the world's top 10 in 2006 to becoming major players in 2009. I have grown. This transformation was initially facilitated by strategic partnerships with foreign technology companies. As Chinese companies developed in-house design capabilities, through licensing agreements developed into co-design relationships.
This unconventional strategy was successful because the overseas technology partner was not a manufacturing competitor but a specialized technology design firm that realized new business ventures through co-design relationships. By leveraging unconventional relocation strategies and engaging in a co-design process with foreign partners, Chinese companies have been able to produce turbines that are comparable in size and sophistication to those offered by global competitors. Additionally, strategic acquisitions, such as Goldwind's acquisition of Germany's Vensys, helped build strong overseas R&D capabilities.
Additionally, government support in the form of R&D subsidies has enabled Chinese manufacturers to invest heavily in in-house R&D, leading to innovations such as Sinobel's 5MW offshore turbine and Sinobel's national offshore wind technology and expertise. This has led to innovations such as the establishment of research and development centers. Equipment Research and Development Center. Although local technology agreements with local centers of excellence do not play a significant role for national champions, other Chinese companies benefit from such partnerships, and the overall development of China's wind power sector on the world stage contributing to global progress and competitiveness.
As a result, according to the Global Wind Report 2023, China will account for 60% of the world's wind turbine manufacturing capacity in 2023, with Europe in a distant second place at 19%, and the United States lagging further behind at 9%. There is.
Solar power department
China's solar power sector has similarly undergone a major evolution, moving from supplying components to producing entire panels, making it the world's largest producer of solar cells.
This transformation is being driven by a strategic focus on export-oriented technology improvement, with Chinese companies set to capture more than 80 percent of the global solar power export market by 2023. Initially, the company relied on overseas markets, but the domestic market has also grown. There are large subsidies, accounting for 50-70 percent of his total investment in solar power.
By 2009, three Chinese domestic champions, including Suntech Power, had secured positions among the world's top 10 in solar power sales through a combination of domestic and international technology integration. For example, Suntech Power leveraged a combination of domestic and international technology transfer. By combining in-house R&D and various mechanisms (licensing, joint ventures, foreign direct investment and acquisitions, collaboration with the University of New South Wales, and partnerships with research institutions such as Sun Yat-sen University), the company has achieved world-class Developed technical expertise. and Shanghai Polytechnic University.
Similarly, Trina Solar and Yingli Solar will benefit from government initiatives, including the establishment of state-run key laboratories and collaborations with key suppliers, local universities, and renowned international research institutions such as MIT in the US and Australian National University. Adopts a comprehensive supported research and development strategy. These companies are expanding their global footprint through acquisitions and overseas R&D centers, increasing their technological capabilities and competitiveness in the global solar market.
Electric and hybrid electric vehicle sector
China has implemented favorable policies to establish itself as a major producer of plug-in hybrid vehicles and electric passenger vehicles. From 2009 to 2022, the Chinese government poured more than 200 billion yuan ($28 billion) into subsidies and tax breaks for the EV industry. China already holds a significant position as a top producer of rechargeable batteries, a key technology in the electric vehicle supply chain.
China's electric and hybrid electric vehicle sector has seen notable examples of traditional technology transfer, particularly in the establishment of joint ventures. These operations were primarily driven by market pull from stricter emissions standards that exceed U.S. standards and government regulations requiring majority-owned joint ventures in China with foreign auto companies. SAIC Motor, China's largest automaker, has established joint ventures with a US lithium-ion battery company and Volkswagen, as well as a cooperative facility with General Motors to develop hybrid and all-electric vehicle technology. SAIC Motor is also expanding its international presence through overseas research and development activities, including the acquisition of a UK-based company. Similarly, other companies, such as Chery Automobile, are focusing on in-house research and development towards the development of electric and hybrid vehicles, especially in the small car sector.
Chinese electric car maker Build Your Dreams (BYD) is taking a unique approach by acquiring local automakers and investing heavily in their own research and development to integrate lithium-ion battery technology into car manufacturing. I did. BYD's local innovation strategy led to the launch of its first plug-in hybrid electric vehicle in 2008. Building on its internal innovation platform, BYD has now established a joint venture for research and development that combines Daimler's automotive platform with his BYD's batteries and electric motors. Technology to co-design electric vehicles under co-branding.
This combination of policy support, strategic partnerships, and internal innovation has established China as a key player in the global EV and HEV market. The same model has made China a global champion of wind and solar power supply chains.
