China’s New-Energy Sector: A Global Game-Changer Driving Sustainable Growth
Beijing, The Gulf Observer: China’s rapidly expanding new-energy sector is not only a testament to its domestic innovation but also a transformative force on the global stage. By fostering collaboration and delivering benefits across the industrial chain, China is offering a fresh impetus to the global economy and green energy development.
One of the most evident impacts is in Thailand, where the government has embraced Chinese automakers to build an electric vehicle (EV) supply chain. Surasit Thanadtang, director of the Thai-Chinese Strategic Research Center, has hailed this move as a strategic step forward. Prominent Chinese manufacturers, including SAIC, Great Wall, BYD, and Chery, have already set up factories in Thailand, attracting further investment and encouraging supply chain expansion by firms like Gotion High-Tech and SVOLT Energy Technology.
Thailand’s collaboration with China is enhancing its EV sector, creating jobs, and driving technological progress, showcasing the mutual benefits of China’s open-door policy in the new-energy sector.
Globally, major multinationals are aligning with China’s advancements in this sector. Tesla’s Shanghai plant, operational since 2019, stands out as its most efficient facility worldwide, producing a vehicle every 40 seconds and serving as the company’s primary export hub. In 2023 alone, the plant delivered 947,000 vehicles, accounting for over half of Tesla’s global output.
Other global automakers are also expanding their presence in China. Mercedes-Benz upgraded its Shanghai R&D hub in April 2024, while Volkswagen announced a 2.5-billion-euro investment to expand its operations in Anhui Province. BMW’s Shenyang production base has received nearly 100 billion yuan in investments since 2010.
Beyond automotive innovations, China is pioneering green energy projects worldwide. The De Aar Wind Farm in South Africa and the Garissa Solar Power Plant in Kenya, both financed and operated by Chinese companies, have alleviated energy poverty and promoted low-carbon energy solutions.
According to the International Renewable Energy Agency, global costs for wind and solar power have plummeted by over 60% and 80%, respectively, in the last decade, with Chinese expertise significantly contributing to these reductions.
As highlighted in the white paper “China’s Energy Transition,” published in August, China is committed to collaborating with over 100 countries to promote sustainable energy, share technical knowledge, and lead the transition to green energy, ensuring a win-win model for global energy transitions.