In a world grappling with climate change and the urgent need for sustainable energy solutions, the dynamics of global power are shifting. The United States has recently voiced concerns over what it terms China’s “overcapacity” in the clean energy sector. However, nations in the Global South are viewing China’s surplus not as a threat, but as an unprecedented opportunity to accelerate their own green transitions.
During a recent event at Renmin University of China in Beijing, Brazilian researcher Marco Fernandes, a research fellow at the Tricontinental Institute for Social Research, shed light on this perspective. “It’s a clear geopolitical game,” Fernandes remarked. “The United States and its allies see China as a challenger to their long-held dominance. But for countries like Brazil, China’s advancements in clean energy are immensely beneficial.”
Fernandes emphasized that China’s significant investment and innovation in renewable energy technologies have made clean energy more accessible and affordable globally. “China has made tremendous leaps in innovation—electric vehicles, solar panels, wind turbines. This progress has driven down costs and opened up opportunities for developing nations to adopt clean energy solutions,” he explained.
The issue of “overcapacity,” as raised by U.S. Treasury Secretary Janet Yellen, suggests that China’s state subsidies for its clean energy industries create unfair competition. However, Fernandes pointed out that such practices are not unique to China. “Many Western countries heavily subsidize their own industries. The European Union, for instance, protects its agricultural sector through subsidies. It’s part of how global markets operate,” he noted.
For the Global South, partnering with China offers a pathway to sustainable development. “It’s strategic to collaborate with a major economy from the Global South,” Fernandes affirmed. “Brazilian companies can team up with Chinese counterparts to produce electric vehicles and solar panels locally. This not only fosters technological exchange but also stimulates economic growth.”
China’s engagement with Latin America has already yielded positive results. “Brazil enjoys a trade surplus with China, which is rare,” Fernandes highlighted. “Our exports of soy, oil, and iron ore have strengthened our economy. This partnership is mutually beneficial.”
As geopolitical tensions between major powers continue, Fernandes urged nations in the Global South to maintain their sovereignty and prioritize their own interests. “There’s a tendency to feel pressured to choose sides,” he observed. “But countries like Brazil don’t have to pick sides. We need to make decisions that are best for us, based on our own interests and development goals.”
The global shift towards clean energy presents both challenges and opportunities. While some view China’s rapid advancements with apprehension, others see a chance to forge new partnerships and embrace innovative solutions. As the world navigates this transition, the perspectives and choices of the Global South will play a crucial role in shaping a sustainable future.
Reference(s):
China's clean energy surplus: Global South shrugs off U.S. alarm bells
cgtn.com
