Photo: Li Yang, Unsplash

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Globally, the prevailing model of economic growth is reaching its limits. Countries’ heavy reliance on fossil fuels increasingly leads to pollution, ill health and climate risk, while rising geopolitical uncertainty exacerbates the economic challenges they face. In this environment, China provides a leading example of how the green transition can maintain growth even during periods of global instability.

This policy insight shows why such turbulence strengthens the case for green growth, creating a strategic imperative grounded in energy security, industrial competitiveness and supply-chain resilience. The authors set out the foundations of resilient growth in China, drawing on examples from countries across the world.

Key points for decision-makers

  • The use of green technologies follows a triple logic of clean, secure and cheap that can underpin resilience in the economy and drive growth in an era of geopolitical uncertainty.
  • By adopting an approach to economic development based on green growth, China can both expand the economy and reduce emissions faster than its climate targets suggest.
  • Chinese investment, manufacturing scale and exports have dramatically reduced the global costs of clean technologies, especially solar panels, batteries and electric vehicles.
  • This has made clean-energy deployment more affordable for other countries while accelerating global adoption.
  • For many developing economies, access to affordable Chinese clean technologies may significantly accelerate electrification and industrial upgrades.
  • Despite rising geopolitical tensions, the economics of international integration still strongly favour cooperation in clean-energy supply chains.
  • Green-finance cooperation, joint ventures and technology-transfer agreements can help countries build domestic industrial capabilities rather than simply become import markets.
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