China has emerged as the dominant force in clean-tech manufacturing, accounting for 76% of all new global factory investment—five times more than all other countries combined.
The findings from BloombergNEF’s Energy Transition Supply Chains 2025 report, show China leads exports in eight out of thirteen clean-tech categories, including solar panels, batteries and electric vehicle (EV) components.
Western nations, despite their climate ambitions, are struggling to secure competitive and resilient supply chains in the face of global trade tensions, high tariffs and insufficient funding.
The UK, the report says, remains “relatively open” to Chinese imports and lacks a strong position in clean-tech manufacturing.
Europe’s efforts, while ambitious, are challenged by underinvestment and major manufacturers exiting the market.
Meanwhile, US policies are complicating matters. “Broad tariffs on imported factory inputs are making it harder to scale U.S. clean-tech manufacturing,” the report notes, warning that Trump-era trade moves may disrupt energy markets further—particularly in the stationary storage sector.
A key issue is global overcapacity.
Clean-tech production in solar, batteries and wind now exceeds demand and is forecast to do so until at least 2027.
While falling prices benefit buyers and accelerate clean energy deployment, they also weaken investment incentives and threaten supply chain resilience.
Emerging markets now absorb 43% of China’s clean-tech exports, up from 24% in 2022, suggesting a rapid redrawing of trade relationships.
Experts warn that without serious financial backing for onshoring efforts, Western nations risk losing out on both economic and sustainability gains.
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