Possible UPSC Questions
- “State–led industrial policy has been the chief driver of China’s dominance in renewable energy.” Discuss.
- Analyse the strategic, economic and geopolitical consequences of China’s control over critical minerals and clean-energy supply chains.
- What lessons can India draw from China’s renewable-energy transition for accelerating its own green economy?
Quick Outline of Key Facts
| Indicator (CY 2024) | China | India (for comparison) |
| Capital deployed in renewables | ≈ US $ 940 bn | US $ 3.4 bn |
| Share of global additions (solar + wind) | > 50 % | ≈ 5 % |
| Critical-mineral control | Polysilicon, lithium, rare earths | Limited; largely import-dependent |
| Policy anchors | 2005 Renewable Energy Law; Five-Year Plans; SOE mandates; BRI export push | National Solar Mission; PLI schemes |
| Grid investment 2010 → 2024 | US $ 33 bn → 88 bn | Targeted Green Corridors, still scaling |
| SOE share in global RE investment* | ≈ 55 % | Minor |
| *Bloomberg data |
Summary
China’s leadership in the green-energy sector is the outcome of two decades of strategic state planning that transformed an air-pollution crisis and anxieties over energy security into an industrial opportunity. Beginning with the 2005 Renewable Energy Law and the 11th Five-Year Plan (2006-10), Beijing guaranteed grid access, feed-in tariffs and cheap credit for solar and wind producers. Large state-owned enterprises (SOEs) such as State Grid, Huaneng and Genertec—backed by state banks and steered by the National Development & Reform Commission—built mega-wind farms, solar parks and ultra-high-voltage transmission lines at record speed.
Domestic scale-up drove costs down worldwide, enabling Chinese firms to dominate every segment of the supply chain: extraction of polysilicon and lithium, manufacturing of PV modules, turbines and batteries, and, via the Belt & Road Initiative, construction of renewable projects in 60-plus countries. In 2024 China invested nearly US $ 940 billion in renewables—more than the rest of the world combined—and added more solar-wind capacity in one year than all other nations together.
The model, however, has faced problems: grid bottlenecks that initially curtailed up to 20 % of wind output, wasteful overcapacity induced by indiscriminate subsidies, and environmental trade-offs linked to massive mineral extraction. Beijing responded by tightening oversight, favouring grid-ready projects and doubling transmission investment.
China is now channeling state capital towards next-generation technologies—AI-enabled smart grids, green hydrogen and advanced nuclear—while Western economies scramble to reshore supply chains under the Inflation Reduction Act and similar schemes.
Significance to the UPSC Exam
- GS II (Governance & Policies): Illustrates how state capacity, industrial policy and SOE coordination can drive structural change.
- GS III (Economy & Environment): Offers a case study on energy transition, critical-mineral security and green technology value chains—directly relevant to India’s PLI schemes, National Green Hydrogen Mission and Critical Minerals Mission.
- Essay / Ethics: Raises debates on balancing speed vs sustainability, state vs market models, and global equity in climate tech.
Understanding China’s trajectory equips aspirants to evaluate India’s policy options, weigh geostrategic risks, and craft comprehensive answers on climate-energy questions.
