China Pulls Ahead in the Renewable Energy Race: What Investors Should Watch

China’s Renewable Energy Strategy Could Reshape Global Markets

There is an ongoing competition between China and the United States to lead the next wave of revolutionary industries, whether in artificial intelligence, electric vehicles, or even advanced life sciences. A central question for investors is how these trillion-dollar industries of the future will be powered. At some point, the debate around energy transition will reach a clear inflection, where renewable energy shifts from being a long-term ambition to the backbone of industrial growth.

At present, China is clearly ahead in renewable energy investment and development. Historically, the country has shown a consistent ability to identify and commit capital early to industries with long-term strategic value. A prime example is the rare earths sector, where China’s investments in the 1980s positioned it as today’s dominant force. Rare earths have since become essential to robotics, advanced defence systems, and digital technologies. Today, China controls roughly 69 percent of global rare earth supply and 90 percent of processing capacity. The question for investors is whether we are now witnessing a similar trend in renewable energy, with China once again laying the foundation to secure long-term leadership in a market set to define the global economy.

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China’s Renewable Energy Surge Leaves the U.S. Behind

The Trump administration recently rolled back a series of renewable energy initiatives, including the termination of a multibillion-dollar loan guarantee for the Midwest transmission line, the suspension of a near-term wind farm off the coast of Rhode Island, and the cancellation of USD 3.7 billion in funding for industrial emission-reduction technologies, according to the Wall Street Journal.

In contrast, Chinese investments has been accelerating its transition to renewable energy at a pace that has surprised analysts. In the first seven months of this year alone, the country installed 277 gigawatts of wind and solar capacity, far exceeding expectations. This rapid buildout could provide China with a long-term advantage in powering energy-intensive industries such as electric vehicles and artificial intelligence.

China’s strategy has been to dominate not just adoption but also manufacturing. The core focus lies in producing solar modules and energy storage batteries, with Chinese companies now holding more than 75 percent of the global market share in these technologies. This leadership has been supported by President Xi Jinping’s “Made in China 2025” initiative, which emphasises ownership of the entire renewable energy supply chain, including critical components like photovoltaic panels that convert sunlight into electricity.

China’s Current Dominance In the Renewable Manufacturing Market

By 2023, a solar module produced in Beijing was already around 65 percent cheaper than one made in the United States. This reflects a broader competitive pattern: by leveraging scale, manufacturing efficiencies, and aggressive pricing, Beijing has established a structural advantage that makes it increasingly difficult for international competitors to remain profitable. For investors, the parallels with China’s earlier dominance in the rare earths market are clear — cost leadership and supply chain control can define global market power for decades to come.