OIES – China Energy Monthly

China's strategy of focusing on renewables and new productive forces like electric vehicles, batteries, and solar panels is paying off, with GDP growth exceeding expectations in Q1 24. Sales of new energy vehicles are growing rapidly, contributing to the electrification of the Chinese economy and driving power consumption. However, falling prices have led to lower revenues from exports and tensions with the US and EU due to China's overcapacity. Despite this, Chinese officials continue to promote exports and overseas investments to be firmly embedded in global supply chains. Renewables are on the rise in China, with large additions of renewable capacity leading to a greater share of non-fossil fuels in power generation. The government's supportive policy framework encourages even more renewables, although coal's demise is not imminent. Concerns about power outages this summer and renewable overcapacity leading to curtailment could see coal production increase. Gas production and imports are rising, with lower prices leading to increased use of gas in power generation.