China’s Industrial Climb: Driven by Commercialization, Not Subsidies
The West often focuses on how much China subsidises its industries, but the real driver is commercialisation—the ability to take technology from lab to global market faster than competitors.
The Shift to Clean Energy
Chinese policymakers describe their industrial evolution as a shift from traditional exports to the "new three": electric vehicles, lithium-ion batteries, and solar panels. This transition is reflected in China’s 2025 GDP growth, where clean energy accounted for over a third.
In March 2026, Chinese companies shipped a record 68 gigawatts of solar panels, double the previous month’s total, and $10 billion in battery exports. Fifty countries set all-time records for Chinese solar imports.
The Role of R&D and Investment
China’s R&D spending surpasses America’s, and the Made in China 2025 initiative achieved 86% of its targets. The 15th Five-Year Plan doubles down on this model.
While subsidies play a part, they are not the key to China’s success. The ability to scale technologies globally is what sets China apart. Examples include:
- BYD sold 4.54 million new energy vehicles in 2025.
- CATL held nearly 40% of the global EV battery market.
- Six Chinese battery manufacturers controlled 69% of global installations.
Europe, facing price competition from Chinese solar panels, stockpiled seven billion euros’ worth in warehouses, unable to match Chinese production costs. China manufactures four out of five global photovoltaics, not due to a single subsidy program, but through state-funded domestic competition.