Electric vehicles, solar power, and batteries supercharged China's economic growth in 2025 — and the numbers are staggering. The country's clean energy sectors drove more than a third of its GDP growth and delivered business worth £1.6 trillion, comparable to Brazil's entire economy.
📊 The Numbers Are Wild
According to new analysis from Carbon Brief, China's clean tech sector has doubled in real value in just three years — from 2022 to 2025.
Key findings:
- 💰 £1.6 trillion total value (15.4 trillion yuan) in 2025
- 📈 More than 1/3 of GDP growth driven by clean energy
- 💼 90% of increase in investment went to green tech
- 🌍 8th-largest economy if it were a standalone country
To put that in perspective: China's green tech sector alone is larger than the entire economy of Brazil, South Korea, or Australia.
🚗 EVs and Batteries: The Heavyweight Champions
Electric vehicles and battery production delivered half the growth in China's clean tech sector.
The transformation has been breathtakingly fast:
- ⚡ More than half of all cars sold in China are now EVs
- 🏭 Domestic EV sales outstrip exports — China's own citizens are driving the revolution
- 🔋 Battery manufacturing leads the world — China produces 75% of global EV batteries
- 🚙 New models launching monthly — intense competition driving innovation and price cuts
Just five years ago, EVs were a niche product in China. Today, they're mainstream — and the rest of the world is scrambling to catch up.
☀️ Solar and Wind: Lightning-Speed Rollout
China's renewable energy deployment played a major role in the economic uplift, with domestic markets outstripping export opportunities.
In 2025 alone, China installed:
- 🌞 216 GW of solar capacity — more than the entire solar capacity of the United States
- 💨 76 GW of wind capacity — equivalent to powering 50 million homes
- 🔌 Combined renewable additions larger than all of Europe's
The pace is so rapid that China now installs more solar every two weeks than most countries install in a year.
💡 Why Green Tech Became an Economic Engine
China didn't stumble into this position. The economic dominance of green tech is the result of deliberate industrial strategy:
1. Massive government support:
- Subsidies for EV buyers (though being phased out as market matures)
- Low-interest loans for renewable energy projects
- Streamlined permitting for solar and wind farms
2. Economies of scale:
- China produces 80% of the world's solar panels
- Battery costs have fallen 90% in a decade due to mass production
- EV prices now competitive with petrol cars — no "green premium"
3. Market competition:
- Dozens of EV brands competing fiercely (BYD, NIO, Xpeng, Li Auto, etc.)
- Constant innovation in battery tech, autonomous driving, design
- Price wars driving affordability — good for consumers
4. Domestic demand:
- Air pollution crises in major cities created political will for clean transport
- Rising middle class wants modern, tech-forward vehicles
- Young Chinese consumers embrace EVs as status symbols (not "eco-warrior" niche)
🌍 What This Means for the World
China's green tech boom has global implications — some positive, some complex:
✅ The Good News:
1. Faster climate action: China is the world's largest emitter, but clean tech is bending the curve. Carbon Brief projects Chinese emissions could peak by 2025 and decline rapidly due to EV and renewable growth.
2. Cheaper green tech for everyone: Chinese mass production has driven down costs globally. Solar panels, batteries, and EVs are now affordable in ways unimaginable a decade ago — accelerating adoption worldwide.
3. Proof of concept: China demonstrates that green transitions can be economically beneficial, not sacrificial. You can grow your economy while cutting emissions.
⚠️ The Challenges:
1. Trade tensions: Western countries worry about being dependent on Chinese clean tech supply chains. The U.S. and EU are imposing tariffs and pushing domestic production.
2. Industry disruption: Traditional automakers in Europe and America are struggling to compete with Chinese EVs. Job losses in legacy industries are a real concern.
3. Resource bottlenecks: Lithium, cobalt, and rare earth minerals needed for batteries and solar are concentrated in a few countries — creating new geopolitical vulnerabilities.
🏭 What About Jobs?
The clean tech boom is a massive job creator in China:
- 👷 6 million direct jobs in renewable energy and EVs
- 🏗️ 15 million indirect jobs in supply chains, construction, logistics
- 🎓 Universities training engineers specifically for green tech careers
- 💼 High-skill, well-paid work — not just assembly line jobs
Critically, many of these jobs are in regions that previously relied on coal mining — providing an economic transition pathway for communities that would otherwise be left behind.
🔮 What Happens Next?
The momentum shows no signs of slowing:
Short-term (2026-2027):
- 🚗 70%+ of Chinese car sales could be EVs by 2027
- ☀️ Solar and wind to exceed coal power capacity by 2026
- 🔋 Next-gen solid-state batteries entering production
Medium-term (2028-2030):
- ✈️ Electric aviation — China testing commercial electric planes
- 🚢 Green hydrogen for shipping — pilot projects underway
- ♻️ Battery recycling at scale — closing the circular economy loop
Long-term (2030+):
- 🌐 Export dominance — Chinese green tech flooding global markets
- 🔬 Next-gen innovation — fusion energy, advanced materials, carbon capture
- 📉 Emissions decline accelerates — China potentially carbon-neutral by 2050s
💬 Global Reactions
Reactions to China's green tech surge are mixed:
"This is the climate action we desperately need. Whatever your politics, Chinese clean tech is bending the emissions curve — and that benefits everyone on the planet." — Climate economist
"We can't let China dominate the industries of the future. The West needs industrial policy to compete, or we'll be dependent on Beijing for everything from solar panels to batteries." — EU trade official
"The speed is unbelievable. Five years ago, we thought it would take decades for EVs to go mainstream. China did it in half the time." — Auto industry analyst
🌟 The Bigger Picture
China's clean tech boom is one of the most consequential economic transformations of the 21st century.
It proves that:
- ✅ Green transitions can drive growth, not slow it
- ✅ Rapid decarbonization is economically possible
- ✅ Industrial policy can work — if sustained and strategic
- ✅ Market competition accelerates innovation
The clean tech sector — worth £1.6 trillion and growing — is now a pillar of the Chinese economy, employing millions and cutting emissions at a scale that seemed impossible just a few years ago.
Whether other countries can replicate this success remains to be seen. But one thing is clear: the green economy isn't a distant dream. In China, it's already here — and it's huge.
"China's clean tech sector has doubled in real value in three years. If it were a standalone country, it would rank as the world's eighth-largest economy."
Source: Positive News | Carbon Brief analysis, February 2026