China's Great Green March

The Middle Kingdom wants to control the global clean-tech sector. Can it save the planet, too?

- Wahyudi Soeriaatmadja

On the outskirts of the Indonesian city of Semarang in Central Java, a new factory is cranking out solar cells and assembling solar panels with the help of robots, while autonomous carts whizz around ferrying parts and components.

The Trina Mas Agra Indonesia solar panel plant, operational since October 2024, is a US$100 million (S$134 million) joint venture between China's Trina Solar, Indonesian conglomerate Sinar Mas and Indonesian state utility PLN.

With an annual 1 gigawatt (GW) total panel capacity that is set to increase to 3GW, the plant is the first and largest integrated solar cell and solar panel manufacturer in Indonesia. It is helping to accelerate a much-needed energy transition in South-east Asia's largest economy, and could in future bring green electricity to Singapore.

In the past year, Chinese solar panel makers have been opening or ramping up manufacturing facilities in Indonesia to take advantage of a burgeoning domestic market with a low solar energy penetration rate and cheap local labour.

The fear of being targeted by tariffs remains real, even though the US is becoming an increasingly niche market for Chinese clean-technology goods after years of trade barriers first imposed by the Obama administration, then expanded by the Trump and Biden governments.

Only 4 per cent of China's total exports of solar power and wind power equipment and electric vehicles (EVs) go to the US, according to data from United Nations Comtrade. A decade ago, the US and European Union were key export markets.

The real focus now for Chinese companies is production overseas, including in the US and within the EU, but especially in developing countries where there is growing demand for clean-tech goods.