The developing world is building its energy transition with Chinese hardware. Countries in the Global South have spent more than $235 billion on Chinese-made clean energy technologies since 2024, according to a Reuters analysis published on October 19, highlighting how China's manufacturing dominance and falling prices are reshaping energy systems across Asia, Africa, Latin America and the Middle East.
The analysis found that the Global South now accounts for more than half of global spending on Chinese-made transformers, switchgear and solar arrays, the equipment needed to generate clean electricity and connect it to the grid.
Electric vehicles have been one of the fastest-growing categories. Imports of Chinese EVs by Global South countries rose from $6 billion in 2023 to $73.2 billion in 2026, more than a twelvefold increase. Battery storage accounts for 29% of spending, according to the analysis.
Why developing countries are buying Chinese
The surge reflects a combination of price, availability and need. China produces the vast majority of the world's solar panels, battery cells and many key components of wind turbines and electric vehicles. Intense competition among Chinese manufacturers, combined with overcapacity, has driven prices down dramatically over the past few years.
For developing countries facing rising electricity demand, high fuel import bills and frequent power shortages, cheap Chinese solar panels and batteries offer an affordable way to expand electricity supply quickly. In several countries, households and businesses have installed rooftop solar systems on a large scale, often without waiting for governments or utilities.
Pakistan has become one of the most prominent examples, with imports of Chinese solar panels surging in recent years as consumers sought relief from high electricity tariffs and unreliable grid supply. Similar trends have been seen in parts of Africa, the Middle East and Southeast Asia.
The shift in trade flows
The rise in Global South purchases also reflects a shift in China's export markets. As the United States and the European Union have imposed tariffs and trade restrictions on Chinese clean energy products, including electric vehicles and solar panels, Chinese manufacturers have redirected exports towards developing countries.
That has helped Chinese companies maintain output despite trade barriers in wealthy markets, while giving developing countries access to cheaper technology. China's trade surplus is heading towards a record in 2026, driven in part by exports of manufactured goods to emerging markets.
At the same time, China has begun to tighten control over some of its technological advantages. On October 16, China's commerce ministry and science ministry proposed adding 12 solar photovoltaic technologies to its export-restricted catalogue, with public consultation running until November 15. That move could complicate efforts by other countries to build their own solar manufacturing industries using Chinese know-how.
Benefits and risks
For the Global South, the benefits are significant. Cheaper clean energy technology allows countries to expand electricity access, reduce dependence on imported fossil fuels, cut air pollution and lower greenhouse gas emissions. It can also improve energy security, as solar and wind resources are domestic, even if the equipment is imported.
But there are risks. Heavy dependence on a single supplier for critical energy infrastructure raises concerns about supply chain vulnerability, quality, cybersecurity and geopolitical leverage. Transformers and switchgear, which form the backbone of electricity grids, are particularly sensitive. Some governments have begun to scrutinise Chinese equipment in critical infrastructure.
