China’s Belt and Road Initiative is now channeling more investment into wind and solar than coal, accelerating Beijing’s clean energy dominance and threatening U.S. geopolitical influence.
At a Glance
- Between 2022 and 2023, 68% of China’s Belt and Road energy investments went to wind and solar projects, overtaking coal for the first time
- From 2000 to 2021, only 13% of China’s overseas energy funding supported renewables, indicating a dramatic policy shift
- Earlier Chinese-backed coal plants are still being completed, potentially undermining climate progress
- China’s control over critical minerals and green technologies is growing alongside its overseas energy footprint
- Analysts warn that China’s clean energy expansion could entrench economic dependencies and erode U.S. influence in emerging markets
Strategic Pivot
China’s Belt and Road Initiative (BRI)—long criticized for bankrolling high-emission infrastructure—is undergoing a seismic shift. Between 2022 and 2023, 68% of China’s overseas energy investments were directed toward wind and solar projects. This marks a striking reversal from the 2000–2021 period, when just 13% of BRI energy financing supported renewables.
Beijing’s reorientation is not purely environmental. By pivoting away from coal and exporting green technology, China is positioning itself as the architect of a low-carbon global economy. This not only enhances its soft power but also places Beijing in direct competition with the United States for clean energy influence in the Global South.
Watch a report: For the First Time, China Invests More in Wind and Solar Than Coal Overseas.
Risk and Opportunity
Despite this shift, the legacy of China’s earlier fossil fuel investments still casts a long shadow. Coal plants financed in previous years are still coming online, threatening to undermine the climate benefits of its new green investments. This creates a dual narrative: one of progress, and one of persistent environmental risk.
More critically for Washington, China’s parallel dominance in green technology manufacturing and critical mineral supply chains is tightening its grip on the future of global energy. Nations eager to meet decarbonization goals are increasingly turning to Chinese-made solar panels, wind turbines, and batteries—cementing Beijing’s role not just as a supplier, but as a systems architect.
For the U.S., the challenge is not simply environmental—it is strategic. As Beijing binds emerging economies into a web of renewable infrastructure and supply chain dependencies, American influence risks being crowded out. This situation underscores the importance of not only countering China’s efforts but also fostering partnerships with like-minded nations. Addressing this will require aggressive investment, diplomatic engagement, and a renewed focus on building resilient, democratic green alliances.
However, the Trump administration’s hostility to green energy efforts may hamstring them as an instrument of foreign policy and give China the edge in developing global influence in this area.
