China's Clean Tech Dominance: 70% Global Capacity, 13% Index Gain in 2025

China is increasingly asserting its dominance in the global energy sector, not through traditional means such as oil, but through clean technology. According to JPMorgan Chase, this dominance is being leveraged not just for economic gain, but also as a geopolitical tool.

Chuka Umunna, the global head of sustainable solutions at JPMorgan Chase, highlighted this trend during a recent summit. He noted that China's substantial investments in green technologies are serving dual purposes: economic benefit and geopolitical advantage. This strategy is intertwined with national security, as the transition to a low-carbon economy becomes increasingly linked to security concerns.

China's control over the clean-tech manufacturing sector is significant, holding over 70% of the world's capacity. This positions China as a key player in the global energy landscape, with the ability to influence both production and export control.

In contrast, the United States is grappling with internal divisions over its energy strategy. While the current administration has prioritized energy abundance, including fossil fuels, there is also interest in nuclear and geothermal technologies. This "all-of-the-above" approach reflects a broader recognition of the need for diverse energy sources, driven in part by the increasing demand for energy due to advancements in artificial intelligence.

Despite the challenges faced by the clean energy sector, including high interest rates and inflation, there are signs of recovery. The S&P Global Clean Energy Index has shown a 13% increase in 2025, indicating a potential inflection point for the industry. JPMorgan's analysts expect monetary policy adjustments, such as rate cuts from major central banks, to further support green economy stocks.

JPMorgan Chase remains a significant player in green investment banking, generating nearly $1 billion in revenue from green transactions or green companies last year. This commitment to green finance underscores the ongoing importance of sustainable investments, even as political landscapes shift.

As the United States continues to navigate its energy future, China's dominance in clean technology positions it as a key influencer in the global energy market. The race for clean tech is no longer just about speed; it's about control over the flow of materials, technology, and power, and China is currently in a strong position to leverage this control for geopolitical gain.