🚘 Europe Embraces China’s Green Tech, Even as Tensions Simmer — EVs, Solar, and Nuclear Power Dominate New Deal

🕒 Last updated on August 5, 2025

The European Union and China held a high-stakes summit in Beijing at the end of July. The event brought together key figures from both sides to talk about trade, global partnerships, and the future of their cooperation.

Tensions at the Top, But Green Energy Finds a Way

However, the summit ended with little agreement on most major issues. While both sides hoped for a breakthrough, especially in trade and diplomacy, tensions were high and compromises were rare.

One significant obstacle was China’s continued backing of Russia. This prevented Europe from fully embracing China as a reliable partner. At the same time, Europe didn’t give in to China’s demands on things like access to critical minerals or fixing trade imbalances. The overall result? A summit full of conversations but not many outcomes.

Yet, there was one major exception—green energy.

Even though other areas saw little progress, both China and the EU agreed to work closely on developing and using green technologies. This included things like solar panels, wind power, and energy-saving innovations. Both sides also promised to keep supporting the Paris Climate Agreement, which the United States has stepped away from.

This cooperation allows Europe to keep getting affordable green tech for its energy transition, while China secures a large market for its mass-produced renewable technologies. It was a win for both, even if not an equal one.

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China’s Green Leap: A Race at Full Speed

China is investing heavily in nuclear energy as well. The country now produces more renewable energy than any other nation on Earth. China made a staggering $818 billion in green energy investments in 2024 alone. It now holds 40% of the world’s total renewable energy capacity. That means almost half the world’s clean power comes from China.

Between January and May 2025, China installed enough new wind and solar power to meet the electricity needs of entire countries like Indonesia or Turkey. That’s just in a few months. In fact, in early 2025, China installed as much solar power as it did during all of 2020.

But solar and wind are just part of the picture.

China is also making big moves in nuclear energy. It aims to become the world’s largest producer of nuclear power by 2030. Right now, China has 58 nuclear reactors that are already working. That’s fewer than the 94 reactors in the United States. But here’s the twist—it took the U.S. over 40 years to build those. China did it in just 10 years.

Many of China’s nuclear plants are newer, safer, and more efficient. The U.S., by comparison, hasn’t opened more than one new plant in the last 30 years—and it was delayed and over budget.

China is also ahead in a new type of nuclear energy tech called Small Modular Reactors (SMRs). These are small, factory-built reactors that can be shipped and set up quickly. China built the world’s first working SMR, called ‘Linglong One.’ Russia followed with the second. The U.S. isn’t expected to complete its first until 2027.

U.S. Misses Out as China Builds Global Green Ties

While China expands its green tech and signs new deals, the United States seems to be stepping back. In 2025, nearly $8 billion worth of clean energy projects in the U.S. were either delayed or cancelled. As China works with Europe and even with countries in Asia, Africa, and South America, the U.S. risks falling behind.

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For China, green energy is not just about cleaner air—it’s also about gaining power. By building and selling green technology, China is improving its position in the global economy. This includes everything from solar panels and electric cars to advanced nuclear tech.

Actually, as part of its Belt and Road Initiative, China intends to sell 30 nuclear reactors to other nations by 2030. These plans help China grow its influence and connect with developing countries that need electricity. China’s green projects are not limited to faraway places. Even in Europe, Chinese electric car makers have started to gain market share.

The EU-China green energy deal is important not just for business but also for global leadership. As the U.S. focuses more on oil and gas, China is moving full speed ahead with renewables. The gap between them continues to grow.

Despite its success in renewables, China is still the world’s largest polluter. Its emissions remain very high. So, while its green energy numbers are impressive, there’s still work to be done. The agreement with Europe shows that China is trying to be part of the global energy solution—even if its motivations are also strategic.