China just threw down a $625 billion gauntlet in the clean energy race. While the US retreats from climate commitments, Beijing announced its first-ever pledge to actually cut emissions - not just slow their growth - targeting a 7-10% reduction by 2035. The move comes as China already dominates global renewable energy investment, spending nearly a third of the world's total last year alone.
China just made the biggest clean energy bet in history while America heads in the opposite direction. At last week's UN Climate Summit in New York, President Xi Jinping laid out a $625 billion strategy that's already reshaping global energy markets - and leaving other world powers scrambling to keep up.
The timing couldn't be more stark. While Tesla and other American companies navigate Trump's renewed Paris Agreement withdrawal, China committed to its first absolute emissions reduction target: cutting greenhouse gases 7-10% by 2035. It's a fundamental shift from Beijing's previous approach of merely slowing emissions growth tied to economic expansion.
"Despite some countries going against the trend, the international community should stay on the right track," Xi said in what observers saw as a clear jab at Trump's climate reversals. The Chinese president didn't need to name names - the contrast speaks for itself.
The numbers back up China's climate leadership claims. According to Chatham House senior advisor Bernice Lee, China's $625 billion clean energy investment last year represents nearly a third of global spending. That massive domestic market has become "a formidable driver" in bringing down renewable technology costs worldwide, she notes.
But Xi's UN speech revealed just how ambitious Beijing's plans really are. The country aims to reach 3,600 gigawatts of installed wind and solar capacity by 2035 - six times its 2020 figures. To put that in perspective, that's more renewable capacity than the entire US currently has across all energy sources combined.
"The rise of Chinese renewables is reshaping the global economy and replacing coal in the domestic market," Lee told Wired. The ripple effects extend far beyond China's borders as massive production scales drive down prices globally.
The electric vehicle sector showcases this dynamic perfectly. China hosts automotive giants like BYD and battery supplier Catl, which powers roughly 50 global brands including Tesla and Volkswagen. Xi announced plans to make EVs "mainstream" in Chinese sales, leveraging the country's control over rare earth minerals essential for battery production.