Southeast Asia has become the largest regional market in Asia for Chinese clean-technology exports, with Chinese shipments to the Association of Southeast Asian Nations exceeding US$20 billion between January and July 2026, representing approximately 50 per cent growth compared to the same period in 2025, according to analysis of Chinese customs data by Ember, an energy think tank. The surge in clean-technology imports reflects the diversification of Chinese exports across multiple sectors. Chinese solar exports to ASEAN countries reached US$4.1 billion in the first seven months of 2026, nearly 90 per cent higher than the corresponding period in 2025, accounting for 57 per cent of China's total solar exports to Asia.
Beyond solar equipment, China exported nearly US$7 billion worth of batteries to Southeast Asia, US$6.3 billion of electric vehicles, US$1.6 billion of grid equipment, and US$1.2 billion of heating and cooling equipment during the same period. The growth trajectory extends beyond Southeast Asia. China's global exports of solar equipment, batteries and electric vehicles reached record levels in March 2026, rising 70 per cent from a year earlier.
Chinese clean technology exports exceeded US$220 billion in 2025, approaching the export value of China's garment, furniture and household-appliance industries, according to Ember's China Energy Transition Review 2026. The Philippines emerged as a particularly dynamic market, becoming the second largest destination for Chinese solar exports in the first quarter of 2026, with imports approximately three times higher than during the corresponding period in 2025, according to the International Energy Agency. Southeast Asian governments' expansion of renewable energy infrastructure and electric vehicle adoption has driven this demand surge.
The region's electricity consumption, manufacturing activity and demand for electric vehicles continue to increase. Thailand and Indonesia have introduced policies linking electric vehicle adoption with domestic manufacturing, while Indonesia has sought investment in battery materials and production leveraging its nickel resources. Malaysia, the Philippines and Vietnam are developing different components of the solar, battery and EV supply chains.
Investment in renewable energy, electrification and energy efficiency in Southeast Asia delivered approximately US$30 billion in fossil-fuel import cost savings during 2025, according to the International Energy Agency's Southeast Asia Energy Outlook 2026. Renewable power capacity across Southeast Asia stood at approximately 120 gigawatts in 2024 and is expected to nearly triple by 2035 under existing policies, with potential to increase fivefold if governments meet their announced targets. However, significant infrastructure challenges remain.
Southeast Asia's transmission and distribution networks will need to more than double in length by 2050 to accommodate electricity demand and expanded variable renewable power generation. Annual investment in grids and storage must increase from approximately US$13 billion currently to US$50 billion by 2050 if countries are to meet announced energy and climate commitments. Regional interconnections through the ASEAN Power Grid require approximately US$27 billion in investment through 2040 to enable countries to trade electricity and balance renewable power variations.
The ASEAN Power Grid moved from strategic planning towards coordinated infrastructure development and operation in 2026, following the launch of the ASEAN Power Grid Financing Initiative in October 2025. The Asian Development Bank committed up to US$10 billion over ten years, supported by initial technical assistance of US$6 million, while the World Bank estimates that achieving the ASEAN Power Grid's broader 2045 objectives could require around US$800 billion in power-generation and transmission investment. Financing constraints persist across the region.
While total energy investment in Southeast Asia exceeded US$100 billion in 2025, the region attracted only about 3 per cent of global energy investment despite accounting for approximately 9 per cent of the global population. The cost of capital in much of Southeast Asia can be approximately twice as high as in advanced economies and China, reducing returns from renewable power, storage and grid projects that require substantial upfront expenditure. Sources: Ember (Chinese customs data analysis), International Energy Agency Southeast Asia Energy Outlook 2026, ASEAN Secretariat, ASEAN Centre for Energy, Asian Development Bank, World Bank.
Source: eco-business.com