A green expansion: China's role in the global deployment and transfer of solar photovoltaic technology

Abstract

Chinese investment and technology will play an important role in meeting growing global demand for new low carbon energy infrastructure, and Chinese companies are increasingly looking outward for market development opportunities. This outward expansion is directly connected to larger trends within China to promote overseas investments, primarily through the Belt and Road Initiative (BRI). Using an original dataset comprised of trade data and firm level data from primary source material and expert interviews, we examine the means by which Chinese companies are deploying solar energy technology abroad, and assess the potential of these activities to facilitate technology transfer to China's trading partners. We find that Chinese solar photovoltaic (PV) firms are primarily engaging in downstream activities overseas, along with some manufacturing activities, and minimal upstream activities. We also find that there are opportunities for technology transfer within all segments of the solar value chain characterizing overseas activities. Therefore, even as the majority of China's solar activities abroad are in the downstream segments of solar product sales and project development, there are still opportunities for South-South transfer of solar photovoltaic technology within these activities. Chinese companies are reaching a broad consumer base in emerging and developed markets through the export of solar panels, manufacturing bases, and services, causing a shift in the traditional models of technology transfer flows. As China will continue play a large role in deploying solar technology abroad in the coming years, its partners must continue to engage with China to build a deeper and stronger capacity for sustainable development.