How China aims to be guiding light in Middle East’s energy transition

Amid geopolitical rivalry between China and the United States, including US sanctions on Chinese clean technology (cleantech), Beijing seeks to strengthen its presence in the Middle East, a region that has traditionally been in Washington’s sphere of influence. What regional actors seem to expect from China is assistance in the development of their green energy sectors.

Estimates suggest the Middle East receives 22-26 per cent of the total solar energy on Earth. As such, it sees China as a desirable partner, knowing that the world’s second-largest economy can produce enough solar cells, electric vehicles and lithium-ion batteries for the region. Given that clean energy was the top driver of China’s economic growth in 2023, it has the capacity to be an important part in the Middle Eastern energy transition.

According to Australian research group Climate Energy Finance, China’s international investments in clean energy technology have surpassed US$100 billion since the start of 2023. The Griffith Asia Institute in Australia estimated that Chinese companies were involved in green energy projects across the Middle East worth about US$9.5 billion between 2018 and 2023.

From China’s perspective, the region represents a very attractive market for expansion. Therefore, it is no surprise that a high-level Chinese delegation participated in the 15th session of the International Renewable Energy Agency Assembly in Abu Dhabi. The event was part of Abu Dhabi Sustainability Week, a platform that gathered together leaders in politics and the global energy sector, as well as provided Chinese green energy companies with an opportunity to strengthen their positions in the United Arab Emirates and elsewhere across the region.

One of them is Jinko Power, a Shanghai-based solar corporation, which played an important role in the construction of the Al Dhafra solar power plant, the largest in the world. “Before entering the Middle Eastern market, many people were laughing at us because we decided to do the solar business in oil-rich countries,” Mothana Qteishat, Jinko Power’s vice-president, told me in an interview.

Those people might not be laughing any more as other Chinese corporations have also entered the Middle Eastern market. Their focus is mostly on the Gulf region, specifically on nations such as the UAE, Saudi Arabia and Oman. In these countries, the Chinese are cooperating with local green energy giants.