China to dominate global markets for solar panels, EVs despite EU, US hurdles: IEA

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China’s clean technology exports are expected to exceed US$340 billion in 2035, group says

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Workers installed solar panels at a photovoltaic base in Lingwu, China. Photo: AFP

Yujie Xue

Published: 2:36pm, 1 Nov 2024Updated: 2:53pm, 1 Nov 2024

China will continue to dominate the global clean energy market with its exports of solar panels, wind turbines, batteries, and electric vehicles (EVs) on track to triple in the coming decade, according to an analysis published this week by the International Energy Agency (IEA).

The country’s clean technology exports are expected to exceed US$340 billion in 2035, up from nearly US$100 billion last year, the IEA said. The Paris-based organisation’s report looked into the top six mass-manufactured clean energy technologies: solar photovoltaics, wind turbines, EVs, batteries, electrolysers and heat pumps.

More than US$200 billion of China’s 2035 exports will come from EVs, followed by batteries and other clean energy technologies, the report said.

Europe will be a major destination for these products, accounting for US$220 billion of China’s 2035 exports, followed by other countries in the Asia-Pacific region, North America, the Middle East and South America, the IEA said.

“Despite the strong impact of the Inflation Reduction Act and Bipartisan Infrastructure Law in the United States, the EU’s Net-Zero Industry Act and India’s Production-Linked Incentive Scheme, China is set to remain the world’s manufacturing powerhouse for the foreseeable future,” the IEA analysis said.

The report came on the heels of the EU’s tariff increases on Chinese-made EVs, which took effect on Wednesday.

BYD, Geely and their subsidiaries will pay additional duties of 17 per cent and 18.8 per cent, respectively. Tesla cut a side deal with the European Commission; its rate is 7.8 per cent.