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How does China become a new energy champion?
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January 2023
Xanxiu Gu,
Poduct Specialist, Chinese equities
ODDO BHF AM
China’s competitive advantage in new energy is massive. For China, developing new energy is a multi-year task. For investors, there could be a lot of growth opportunities to seize.
As the world’s factory, China is known as the largest consumer of coal. However, in the past decade, it has also become a global champion in new energy sectors, such as solar energy, wind energy, and electric vehicles. China is at the same time the biggest investor in new energy industries and the biggest player on the global supply chain of new energy devices and products. In 2021 it invested $380 billion in new energy (vs. $235 billion by North America), more than any other country. China has proven its capability to build solar and wind plants at a massive scale and rapid speed.
After years of development, leading companies from different new energy sectors have appeared in China and have started to expand into global markets. In 2022, as Europe faced an energy shortage, Chinese new energy companies expanded their global footprints at a faster pace.