Breaking bottlenecks

It is no longer a question of what China can provide, but how all parties can work together to promote the Asia-Pacific's green transition

The Asia-Pacific economies, which are at varying stages of industrialization and with different resource endowments, share a demand for proven, affordable and maintainable green technologies. Through regional cooperation platforms such as the Asia-Pacific Economic Cooperation mechanism, China is leveraging its comprehensive green industrial chains and engineering expertise to meet regional demands, not just by expanding exports but by helping partner economies reduce their transition costs and strengthen capacities.

The Asia-Pacific region has developed a multi-tiered regional cooperation network, providing an institutional foundation for promoting green technology. The Regional Comprehensive Economic Partnership reduces costs through tariff reductions and trade facilitation, while APEC continues to integrate sustainable development into its agenda. As APEC's host economy in 2026, China has proposed jointly building an inclusive, innovative and synergistic Asia-Pacific energy community, emphasizing high-quality energy services, the synergy of artificial intelligence and energy systems, and collaborative governance.

Beyond institutional support, the complementary nature of regional economies in green development creates vast potential for technology cooperation. Southeast Asia and Pacific island nations, rich in solar and wind resources, often face constraints in accessing cost-effective equipment and developing long-term operational capabilities.

China's green manufacturing and project experience could help meet these varied needs in the region through trade in green equipment, renewable energy projects and capacity building. And its scale advantages in green industries can make products and services more affordable for Asia-Pacific partners. Its comprehensive industry system, covering research and development, manufacturing, construction and maintenance, lowers overall project costs and diversifies technology exports into tailored solutions.

Take new energy equipment for example. According to the National Energy Administration, China supplies over 80 percent of global photovoltaic modules and 70 percent of wind power equipment. In the past decade, China's contributions have helped reduce the average cost of wind and solar power projects by over 60 percent and 80 percent, respectively. For resource-rich but capital- and technology-constrained Asia-Pacific economies, affordable equipment directly impacts their renewable energy development speed.

China's green supply in the transportation sector has also scaled significantly. According to the China Association of Automobile Manufacturers, in 2025, China's production and sales of new energy vehicles both exceeded 16 million units, ranking first in the world for 11 consecutive years, with exports surpassing 2.6 million units. Entering the Asia-Pacific market, these vehicles offer lower operating costs and reduced emissions compared to fossil fuel vehicles. Beyond equipment exports, China's experience in digital grids, energy management, and industrial internet provides reference paths for economies at different development stages to enhance their energy efficiency.

Green cooperation extends beyond the commodity trade. China promotes market openness, supply chain collaboration, local capacity building and financial support to convert green technology dividends into tangible development benefits for Asia-Pacific economies.

Chinese enterprises actively participate in regional renewable power plants, grid upgrades and industrial energy-saving projects, establishing a complete chain from manufacturing to maintenance. Projects emphasize local enterprise and labor involvement, fostering local supporting industries, boosting employment, and enhancing the region's green supply chain resilience.

China has always focused on local capacity building alongside hardware exports. Through cooperation mechanisms such as APEC, the Belt and Road Initiative and the Asia-Pacific Network for Sustainable Forest Management and Rehabilitation, China supports ecological demonstration projects, technical training and joint research exchanges, helping its partners accumulate practical experience and cultivate local professionals for sustainable project operation.

In the long run, project construction is merely the starting point of cooperation. Capacity building and financial support determine whether the cooperation can be sustained. China has fully leveraged the role of green finance, providing financial support for renewable energy and ecological protection projects in the Asia-Pacific region through diverse tools such as preferential credit, green bonds and climate investment and financing. This has alleviated the capital constraints on green projects and facilitated the implementation of more advanced green technology solutions into tangible projects.

APEC's "China Year", with the theme "Building an Asia-Pacific Community to Prosper Together", offers an institutional window to deepen cooperation. The focus should broaden from "what China can provide" to "how all parties can solve problems together", integrating technology supply, rule coordination and capacity building.

First, the system of differentiated cooperation should be improved to consolidate the foundation for regional coordinated development. Frameworks such as RCEP and APEC should be leveraged to promote mutual recognition of green product standards, facilitation of environmental services and alignment of green investment rules. In light of the development stages of different economies, cooperation arrangements should also be differentiated: for economies in the process of industrialization, the focus should be on affordable equipment, infrastructure and financing. For more mature economies, emphasis can be placed on joint research and development, digital carbon reduction and standard coordination. Such differentiated institutional arrangements can enhance cooperation efficiency, and make individual aid and trade measures more effective.

Second, joint innovation should focus on technologies that address specific local needs and strengthen economies' ability to manage their own green transition. Adhering to the principle of adapting measures to local conditions and needs-based empowerment, the pain points and difficulties in the green transformation of various economies should be addressed. The sharing of scientific research achievements, and mutual recognition and alignment of industry standards should be encouraged, along with the localization and large-scale application of advanced green technologies.

Third, all-round and diversified cooperation scenarios need to be expanded to release the dividends of inclusive and shared development, with attention given to the challenges faced by micro, small and medium-sized enterprises.

Fourth, inclusive regional green governance and the strength of multilateral collaborative governance should be upgraded. The principles of extensive consultation, joint contribution and shared benefits should be adhered to. Full consideration should be given to the relationship between development and emissions reduction.

The author is an associate researcher at the Institute of Economics at the Chinese Academy of Social Sciences.

The author contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn.