A transformative wave of Chinese overseas investment is reshaping the global clean technology landscape, with emerging markets in the Global South becoming central to the energy transition. A new report from the Net Zero Industrial Policy Lab (NZIPL) highlights that since 2022, Chinese firms have channelled more than USD 220 billion into green technologies abroad, positioning the country as a driving force behind the global buildout of clean energy infrastructure.

According to the report, these investments span 54 countries and cover sectors such as batteries, solar power, wind energy, new energy vehicles (NEVs) and green hydrogen. The capital flow has already exceeded the inflation-adjusted value of the US Marshall Plan, which stood at around USD 200 billion in today’s terms. Importantly, 75 per cent of the projects have been located in the Global South, underscoring how China’s strategy is accelerating industrial development and green manufacturing capabilities in developing economies.

The analysis draws on the China Low Carbon Technology foreign direct investment (FDI) database, which catalogues 461 projects between 2011 and mid-2025. Managed by NZIPL at Johns Hopkins University and the Global Development Policy Center at Boston University, the database will soon be incorporated into a broader Global Low Carbon Technology FDI database that tracks worldwide clean technology investment patterns.

The pace and scale of activity in recent years has been striking. Over 80 per cent of the tracked projects were launched after 2022, accounting for USD 210 billion or nearly 88 per cent of the total pledged capital. A record 165 projects were announced in 2024 alone, signalling an unprecedented acceleration of investment momentum. Analysts note that this surge demonstrates China’s strategic decision to anchor itself as the leading supplier of energy transition technologies in international markets.

Equally significant is the rise of megaprojects, with more than 60 ventures surpassing USD 1 billion each in committed investment. These large-scale undertakings indicate a shift from incremental investments toward the creation of long-term industrial ecosystems for clean technology manufacturing. The report stresses that such megaprojects are poised to exert substantial economic, industrial and environmental impacts in host countries, creating jobs, expanding infrastructure and fostering the transfer of knowledge and technology.

For the Global South, the inflow of Chinese capital represents both an opportunity and a challenge. On one hand, it provides access to critical technologies and financing needed to advance national decarbonisation plans. On the other, it raises questions about local value creation, dependency on external actors, and the governance frameworks required to ensure sustainable outcomes.

Source: 

https://www.downtoearth.org.in/energy/chinas-220-billion-capital-injection-turning-global-south-into-clean-tech-hub