China's FDI Drives Global Green Transition
The rapid growth of Chinese foreign direct investment (FDI) commitments in green manufacturing supply chains is a result of domestic firms seeking to escape intense competition at home.
Since 2022, Chinese FDI commitments in green manufacturing have exceeded $220 billion, surpassing the scale of the Marshall Plan. These investments span multiple green sectors, including:
- batteries
- solar
- wind
- new energy vehicles
- green hydrogen
Geographically, Chinese FDI commitments are spread across 54 countries in Southeast Asia, the Middle East and North Africa, Latin America, Central Asia, and Europe.
These commitments can build on the financial and technological capabilities of Chinese firms, driving a global decarbonisation bargain.
Author's summary: China's FDI drives global green transition with $220 billion investments.
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