The Emerging East: A Series on China’s Clean Energy Development

The Emerging East is Anything Intelligent’s new, ongoing series on China’s fast-paced technology development.

Pudong, China

Earth’s most populous country receives no shortage of western attention. Reporters constantly spotlight China’s skyrocketing economic development and large population pool. Business professionals scramble to learn Mandarin in anticipation of new investment opportunities in the region’s emerging markets. Activists keep wary eyes on human rights violations, government crackdowns, and unhealthy pollution.

Much of this attention feeds into China’s image as a ruthless pillager of its human and natural resources. But amidst controversy over sweatshops, lead-contaminated paints and Olympic smog, China has positioned itself as the world’s next economic and technological power. Beneath a dirty economy driven by low-tech, manual labor, China is busily cultivating hi-tech companies and technologies that are ready to compete in the international market. Make no mistake — with its government’s ardent steering, the economy is transitioning fast.

Cleaning China

China is still a developing nation focused on its economic development at the immediate expense of the environment and climate. It’s position is similar to the pro-poor argument that Austin Thompson puts forth in AI’s “Climate Change vs. Poverty” debate: economic prosperity first, climate change second. However, China has already become too powerful in the world to stay its economic course without serious environmental consequences. A new Time magazine article reports on China’s indispensable role in the global economy, an importance highlighted by the current recession:

Overall, the International Monetary Fund (IMF) forecasts that in the three years from 2008 to 2010, China will, astonishingly, account for almost three-quarters of the world’s economic growth. Not surprisingly, China has now become the focus of a world that is looking for a way out of the swamp. As Shanghai-based economist Andy Xie puts it, “Everyone wants to know the same thing: Can China save the world?”  [No emphasis in source]

Given its growing market control, is China willing to sacrifice some economic growth to reduce its environmental footprint? As it turns out, China sees alternative energy as a new opportunity for investment and growth rather than an economic barrier. It strives to become the world’s leader in green technology, just as the U.S. develops its own energy and technology sector. The Chinese government heavily subsidizes clean-energy companies to spur technological and economic growth. Taking advantage of foreign business interest, China also grants U.S. companies market access in return for technology, allowing its industry to piggyback on the developments of others. Largely under the radar, China has thus made impressive inroads into clean technology markets. According to BusinessWeek, it is already the world’s number 1 solar panel producer and number 2 wind turbine market.

While China’s investment in clean technology is a welcoming sign for earth’s climate, it spells more adversity for competing U.S. companies. China’s aggressive iniatives, when coupled with its cheap labor and resources, creates a cost threshold that can undercut most companies in developed countries. The U.S. is similarly incentivizing its industries, but it must move faster and stronger to claim its position atop the clean energy sector. In future posts, this series on The Emerging East will look into specific technologies that Chinese companies are developing — and the consequences facing western economies.

Elu1299 studies environmental science and public policy at Harvard University.

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