Green transition is the topic of the time in the west. Both the United States, United Kingdom and European Union have pushed renewable energy, electric vehicles and net zero at the top of their agendas in the last five years, with resolutions made at COP28 tripling down upon commitments made during the Paris agreement further exemplifying this global transition. Despite this global initiative being largely diplomatically led by the west, the real victor in this transition is China. China has become “the green dragon” a manufacturing powerhouse supplying the vast majority of the world’s newfound demand for renewables, furthering its economic growth and increasing global reliance on Chinese trade in the backdrop of the US-China trade war. By accepting China as the “green hegemon” the west would be left at the mercy of Chinese trade becoming reliant on Chinese technology to build and maintain a net zero economy and by extension have to make geopolitical concessions in order to maintain good trade relations. In this article our analysts assess the extent of Chinese dominance of the green industrial sector, the consequences of said dominance and policy options that could be explored by western governments to mitigate the resulting political and economic risks.
September 26, 2024
Trade
Trade