China's energy profile is a paradox: it consumes over half the world's coal while simultaneously building the world's largest solar and EV industries. Cheap coal power underpins low electricity costs for Chinese factories, while oil and gas revenues fund clean energy projects. By spring 2025, wind and solar provided over a quarter of China's power, suggesting domestic coal use may have peaked. However, coal remains strategically important, with increased exports offsetting slowing domestic demand. Essentially, China's green ascent is fueled by its coal economy. Much of the world's solar equipment is manufactured using fossil fuels, with coal generating over 60% of the electricity used. China's massive investment in solar factories, while driving down panel costs, relies heavily on coal-fired power. Furthermore, China's coal and heavy industries support its clean-tech supply chain, with even coal exports indirectly feeding Asia's green economy. Yet, Chinese overseas energy investment still heavily favors coal and oil. In short, Chinese state capital remains intertwined with both legacy and clean energy. China's EV juggernaut is sweeping across Asia, but faces intense price competition. In South Asia, Chinese energy infrastructure investment presents a mixed picture: financing coal plants in Bangladesh while simultaneously flooding the market with solar panels. This creates strategic tension, with China's solar panels outcompeting its power plants in countries like Pakistan. While Asia benefits from cheaper clean technology and job creation, heavy reliance on China creates vulnerabilities. Asian policymakers need to diversify energy sources and build local capacity to avoid replacing one energy dependence with another.
