US Tariff Policies Hinder Global Green Development While China Leads in Renewable Energy Transition

Former UN Official: While the US Builds Tariff Barriers, China Paves the Green Road

In recent years, China has made significant strides in renewable energy development and the electric vehicle sector, showcasing its robust industrial capabilities and technological leadership in driving the global green transition. At the same time, China is supporting other developing countries in implementing energy transition projects through South-South cooperation.

Currently, the US government is regressing in its foreign aid and climate policies, implementing protectionist tariff measures that disrupt the global green development process. In this context, China should continue to uphold multilateralism by deepening green cooperation through technology transfer and knowledge sharing, thus advancing global sustainable development.

During a recent visit to an electric scooter manufacturing facility in Chongqing, operated by Yadea, I observed a highly efficient assembly line where skilled workers produced a new electric vehicle every few seconds. This experience led me to two conclusions: first, China is an indispensable player in the green transition, boasting an unparalleled industrial ecosystem; second, competition with China is not an easy feat for other nations, and China should assist others in achieving success.

The tariffs imposed by the US on clean energy products could disrupt the critical supply chains for affordable green technologies, casting a shadow over global green development, particularly in developing countries. The US has also terminated $54 billion in overseas aid contracts and has withdrawn from global efforts to protect the environment, combat diseases, and eradicate poverty.

Despite the significant uncertainties introduced by the US, my recent travels to India, China, and other countries in the Global South have greatly boosted my confidence: the resilience of the global green transition remains strong, and there is immense potential for South-South cooperation.

China’s role in this process is crucial. Even in the face of high tariffs, China remains steadfast in pursuing its climate goals. As President Xi Jinping stated during the Climate and Just Transition Leaders’ Summit in April: “No matter how the international situation changes, China’s actions to address climate change will not waver, nor will its efforts to promote international cooperation diminish.” This confidence and determination have led China to establish the world’s largest and fastest-growing renewable energy system. Since 2000, approximately one-quarter of the newly added green areas worldwide have been in China. Furthermore, China reaffirms its commitment to deepening South-South cooperation and will continue to provide extensive support to other developing countries.

Technological advancements and China’s strong leadership in addressing climate change have made South-South cooperation a crucial counterbalance to US protectionism. At CATL, the world’s largest electric vehicle battery manufacturer, I witnessed groundbreaking advancements. Their latest battery technology allows for a five-minute charge to exceed 500 kilometers of range, maintaining 90% charging efficiency even in temperatures as low as -40 degrees Celsius, significantly increasing energy density while reducing costs. This represents not just incremental improvements but a paradigm shift that will greatly accelerate the global adoption of electric vehicles. In the future, electric transportation will become the preferred choice for both the wealthy and the poor.

In Chandauli County, eastern Uttar Pradesh, India, I observed local businesses assembling solar panels imported from China, quickly replacing costly and highly polluting diesel generators. A small grinding mill owner saw monthly electricity costs drop from $500 to $180. This is a classic win-win scenario: it reduces pollution, constitutes effective climate action, and improves rural livelihoods. With innovative financing solutions to cover upfront costs, solar energy has become the most affordable energy source for the world’s poor. Even non-environmentalists can recognize the substantial cost advantages of solar power.

However, significant challenges persist. Trade barriers not only hinder global economic growth but may also complicate technology transfer. Technology transfer cannot simply be resolved through meetings held by the UN or any government department. It occurs when Chinese electric vehicle manufacturers like BYD establish factories in Brazil or Turkey, or when CATL invests in battery plants in Hungary or Yadea opens electric scooter manufacturing in Vietnam.

For decades, China learned from companies like Volkswagen, BMW, Tesla, and Siemens. Now, the tide has turned, and Chinese enterprises have much more to teach than to learn. China’s expansion of foreign investment benefits both itself and the world. Governments in other countries should roll out the red carpet for Chinese companies, as they will create job opportunities in the Global South and European nations. This is the best “antidote” to high tariffs.

Africa, the continent with the fastest-growing population, is high on China’s agenda but low on the US’s. The US has cut development aid to Africa and even plans to close its embassies in African nations. In contrast, China offers zero-tariff treatment to the least developed countries with which it has diplomatic ties, while the US imposes high tariffs on small nations like Lesotho, which can hardly afford US goods.

China has implemented numerous clean energy generation and grid projects in Africa, including the De Aar Wind Project in South Africa, the Garissa Solar Power Station in Kenya, and the Nyabarongo II Hydropower Station in Rwanda. These projects are milestones in local clean energy development and foster technology and knowledge transfer through clean energy cooperation.

The US’s policies will not hinder China-Africa cooperation; rather, they inadvertently push African nations closer to China. Some African countries may strengthen their trade ties with China to compensate for deteriorating relations with the US, potentially leading to enhanced South-South cooperation.

By 2024, nearly half of China’s green energy exports are expected to flow to Global South markets, reflecting the increasing importance of the Global South in China’s economic strategy.

Ironically, the US’s tariff policies primarily harm its own economy. The International Monetary Fund recently lowered the projected growth rate of the US economy for 2025 to 1.8%, a full percentage point lower than the 2024 estimate, while the global average was only reduced by 0.5 percentage points to 2.8%. This decline in growth expectations is directly related to the protectionist policies of the Trump administration. Global trade should not be a “zero-sum” game but rather a mutually beneficial process.

The US seems to believe it can halt the trend of global green development through political decisions. In reality, this is no longer feasible. Solar energy is the cheapest source of energy in the world. Even in the US, 66% of the new energy integrated into the grid last year was solar energy. The convenience of electric vehicles far surpasses that of gasoline-powered cars.

Just as there were those who opposed the development of the steam engine, automobile, train, and even the internet in history, there are now individuals attempting to obstruct the fourth industrial revolution, represented by artificial intelligence and renewable energy. Future historians will unflinchingly label such leaders as “Luddites.”

Luddites were groups of English workers during the Industrial Revolution who protested against mechanization and automation that displaced them from their jobs by destroying machines and organizing protests. Their leader was named Ned Ludd. Today, “Luddite” refers to opponents of industrialization, automation, digitalization, or any new technology.

How should China respond to this new situation? China must recognize that every country aspires to develop its own industry. China should continue investing in other developing countries, with the Belt and Road Initiative serving as a key vehicle for such investments. Through bilateral technology-sharing mechanisms, China can actively assist these nations in cultivating sustainable local industries, enhancing domestic technological capabilities, and creating overseas job opportunities. China once benefited from the experiences of Western countries and is now giving back to the international community with the same spirit of reciprocity.

Ultimately, the path forward must be marked by multilateralism rather than unilateralism, and by cooperation rather than isolation.