A group of eight Western venture capitalists in clean technology,following a July road trip across China where they visited factories,asserted that China's dominance has rendered Western start-ups spanning battery manufacturing and recycling,electrolysers,solar and hardware for wind uninvestable,Bloomberg reported on Monday.
Meanwhile,China's battery giant CATL is ready to assist European battery makers and contribute to building up a regional industry hub as the Chinese giant bets on strong growth in the continent's electric vehicle(EV)market,according to the Financial Times.
CATL is not the only Chinese company in the clean tech sector looking to invest in Europe.So,why do Chinese companies remain optimistic about Europe's clean tech industry while Western investors seem more pessimistic?
The Western clean tech industry is facing challenges such as high costs and the rapid pace of technological renewal,which may cause venture capitalists to be cautious toward such investments.However,where financial investors see insurmountable cost barriers and competitive challenges,industry players such as Chinese clean tech companies see potential for synergy and growth.
It is not a question of whether European industries have investment value,but that they require new technological capabilities to overcome bottlenecks in expanding production and achieving cost efficiency.This is why the revival of Europe's clean tech industry is in need of the new impetus brought by Chinese technological investments.
The cost gap is a main reason why Western venture capitalists consider Western clean tech industries uninvestable.Yet,at its core,the gap essentially reflects a disparity in the efficiency of technology application.In the case of Europe,the continent boasts a solid industrial foundation,strict environmental standards,and strong market demand.Particularly in areas like wind and solar energy,and green hydrogen,it has accumulated profound expertise.Its challenge lies in the bottlenecks some European companies face when commercializing research and development(R&D).
In contrast,Chinese companies excel at integrating entire industrial chains and expanding production.Against this backdrop,the options for Europe's clean tech sector become clear:if its industries can tap into and benefit from China's technology investment,whether through accessing advanced manufacturing processes,leveraging proven supply chain management expertise,or collaborating on the localization of high-efficiency production models,it could pave the way for revitalizing the competitiveness of the sector.This collaboration could not only enhance innovation within Europe but also foster a more sustainable and resilient clean technology landscape that can effectively compete on a global scale.
Chinese companies are adept at rapid iteration,cost reduction,and large-scale production,while Europe excels in standard-setting,R&D innovation,and high-end brand operations.The combination of the two is not about one replacing the other but about jointly building a stronger and more complete green industrial chain.
More importantly,Chinese technological investments bring to Europe's clean tech industry the transformative potential of"ecological reconstruction."The advantages of Europe's clean technology industry have never faded.Its pursuit of environmental standards has given birth to stringent targets for automotive carbon emissions control.
Also,Europe has rich experience in the application of renewable energy sources and battery energy storage.Against this backdrop,Chinese companies'technological investments seek deep integration with Europe's local strengths,combining China's proven production efficiency and technical scalability with Europe's standard norms so as to support its industrial base and enhance the global competitiveness of both parties in the clean tech arena.
From a broader perspective,the global energy transition is not a"zero-sum game."It requires technology sharing,capacity cooperation,and ecological co-construction.The investment behavior of Chinese companies shows that industrial players have shifted to a long-term strategy of"going where the technology is needed."
The future of clean technology lies in the formation of a cross-regional,cross-sectoral,and mutually beneficial industrial network.Europe has the foundation and the demand,while China has the technology and the production capacity.Their cooperation has the potential to reshape the competitiveness of Europe's clean energy industry and serve as a driving force for the global green transition.
