🕒 Last updated on September 18, 2025
In just three years, Chinese clean tech companies have spent more than $210 billion building overseas factories.
A massive shift in clean tech investments
These factories make products like solar panels, batteries, and electric vehicle parts. Most of these projects began in 2022 and have now grown into one of the largest global industrial shifts in recent years.
A new policy brief has tracked the movement of these investments. It found that by mid-2025, there were 461 projects worldwide linked to Chinese clean tech manufacturers. Together, these projects represent a wave worth $227 billion. The money is not only going into factories but also into supply chains and partnerships that support production in different parts of the world.
This surge shows how quickly China’s clean tech industry is spreading outside its borders. Instead of only making products at home and exporting them, Chinese companies are now setting up shop in other countries. This makes it easier for them to reach new markets, avoid trade barriers, and lower shipping costs.
Southeast Asia stays on top
Southeast Asia has become the biggest destination for these factories. Countries like Vietnam, Thailand, and Indonesia are hosting the majority of the projects. These nations offer cheaper labor, growing demand for clean energy, and governments that welcome investment.
Out of the $227 billion in global projects tracked, most are landing in Southeast Asia. This includes large-scale battery plants, solar panel production sites, and electric vehicle assembly lines. Many local companies are also benefiting by becoming suppliers and partners in the value chain.
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Another reason Southeast Asia is attracting attention is its role as a gateway. By producing in these countries, Chinese manufacturers can send products to nearby markets, including India and Australia. At the same time, they can reach Europe and the United States with fewer trade restrictions.
What makes this trend even stronger is the shift in business models. Chinese firms are no longer just building their own plants. They are also using lighter methods such as licensing technology, contract production, and forming partnerships with local companies. This approach reduces risks and makes expansion faster.
For example, instead of spending billions to build a new plant from scratch, a company might license its designs to a local partner or work under an original equipment manufacturer (OEM) agreement. These tie-ups allow them to spread their influence widely without heavy upfront costs.
Middle East and North Africa on the rise
While Southeast Asia remains the top hub, the Middle East and North Africa (MENA) are seeing a fast rise in projects. The region has become a hot spot for large-scale investments, particularly in solar and battery production.
Countries in MENA have been trying to diversify their economies by moving away from oil dependence. Clean tech offers a clear path to do that. The availability of land, abundant sunlight, and strong government backing make the region ideal for solar projects.
Chinese companies have noticed this and are rapidly expanding their presence there. New factories and joint ventures are being set up, especially in places where governments offer incentives for green energy. These projects are not only serving local demand but also preparing to export products to Africa, Europe, and beyond.
The combination of Southeast Asia’s dominance and MENA’s fast rise is shaping the geography of global clean tech. The investments are spreading across continents, creating new hubs of production outside China itself. By mid-2025, the scale of this transformation is clear: 461 projects worth $227 billion are reshaping supply chains, industrial ties, and energy production worldwide.