As Southeast Asia races to meet growing energy demands, China is emerging as a key player in the region’s transition to renewable energy. With the rise of tech manufacturing and data center growth driving the region’s need for sustainable power, China’s solar energy market is taking center stage.
One of Southeast Asia’s leading renewable energy providers, Solarvest, plans to tap into China’s dominance in solar technology. According to a local manager, the company intends to increase imports from China to meet the region’s green energy needs.
“We plan to invest heavily in the coming years. Purchasing equipment and components from Chinese suppliers, who have perfected both the solar technology and supply chain, offers the best opportunity to produce low-cost green energy that can compete with fossil fuels,” the manager said.
Through its Belt and Road Initiative, China has expanded its influence over energy infrastructure in countries like Malaysia, Thailand, and Pakistan. However, this expansion has drawn criticism from the United States, which has accused China of subsidizing solar manufacturers and underpricing products to the detriment of global competition. This has led to tariffs and trade barriers from the U.S.
Despite these challenges, China remains a dominant force in the solar energy sector, benefiting from economies of scale and growing global demand for climate solutions. In 2024, solar energy attracted $500 billion in investment, surpassing all other types of renewable energy, according to the International Energy Agency (IEA).
Unlike offshore wind projects, which can take over eight years to complete, solar plants can be built in under two years. This speed makes solar an attractive option for companies eager to transition to renewables, according to industry experts.
For countries like Malaysia and Thailand—both heavily reliant on fossil fuels but aiming to attract tech giants such as Apple and Google—solar offers a faster and more cost-effective solution. These companies have committed to 100% renewable energy through the RE100 initiative.
China’s dominance in the solar market is clear. It is home to top manufacturers such as Longi Green Energy, Tongwei, and Jinko Solar, as well as leading inverter makers like Huawei, Sungrow, and Ginlong.
Despite efforts from the U.S. and India to build local production capacity, China is projected to maintain over 80% of global photovoltaic manufacturing by 2030, with its solar products costing 20-30% less than competitors, according to the IEA.
Experts attribute China’s edge to its large-scale economy, advanced technology, and ability to deliver cost-efficient products. Even as trade barriers are imposed to reduce reliance on Chinese goods, global demand for affordable Chinese solar solutions remains strong.
Companies like Foxconn have highlighted that China’s solar energy solutions can compete directly with fossil fuels in terms of cost, helping drive adoption worldwide, especially in markets looking to expand their renewable energy capacity.
China’s rise to dominance in the solar industry was not inevitable. In the early 2000s, Japan and Taiwan led the photovoltaic market. However, China’s vast scale and government-backed subsidies allowed it to surpass these competitors. Today, China controls more than 90% of the global solar supply chain, from polysilicon production to module manufacturing.
Related Topics:
- What is Solar Energy Stored In? A Detailed Explanation
- What Are the Limitations of Solar Energy?
- What Powers a Solar Panel?