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China’s clean tech leadership positions it to capitalize on the global energy crisis sparked by the Iran conflict.Norco TodayThe Iran war has disrupted global energy supplies, leading to a spike in fuel prices worldwide. While most of Asia is hit hard by the crisis, China is poised to benefit as the shift away from fossil fuels accelerates the demand for clean technologies – an industry China already dominates. China’s focus on renewable energy, electric vehicles, and battery production has given it a significant advantage over the U.S., which has favored fossil fuel development under the Trump administration. The energy shock is expected to help Chinese industries like BYD and CATL expand their global footprint in clean tech exports.
Why it matters
The Iran conflict has exposed the fragility of the world’s reliance on fossil fuels, particularly in energy-importing Asian nations. This crisis is validating China’s long-term strategy of investing heavily in renewable energy, electric vehicles, and battery technology – industries where China already leads globally. As countries scramble to secure alternative energy sources, China’s clean tech dominance positions it to capitalize on growing global demand.
The details
Before the Iran war, China was already the world leader in battery, solar, and electric vehicle production and exports. Now, as global energy disruptions drive up fuel prices, the demand for Chinese clean tech products is expected to surge. Chinese companies like BYD and CATL are well-positioned to benefit, with their shares already rising significantly in March. Meanwhile, high U.S. tariffs have largely shut out Chinese EVs from the American market, giving Chinese automakers an advantage in other regions like Southeast Asia. The energy crisis is also accelerating clean energy adoption in countries like Pakistan and Indonesia, where Chinese firms play a major role in the supply chain.
- In late February 2026, the Iran war began.
- In March 2026, shares of Chinese companies like BYD and CATL rose by around 24% and 11% respectively.
- In December 2025, Pakistan had imported over 50 gigawatts of Chinese solar panels since 2017.
- In March 2026, EV leasing demand in the UK jumped by more than a third compared to February.
- In 2023 and 2024, Chinese firms signed over $64 billion in deals with Indonesia’s state utility for clean energy projects.
The players
China
The world’s leading producer and exporter of batteries, solar panels, and electric vehicles, with a long-term strategy of investing heavily in renewable energy.
United States
The world’s top oil producer, which under the Trump administration had scaled back on renewable energy and leaned on its vast oil and gas resources, promoting energy exports to achieve ‘energy dominance’.
BYD
A major Chinese vehicle manufacturer and a leader in electric vehicle production and exports.
CATL
A leading Chinese battery producer and exporter, well-positioned to capitalize on growing global demand for battery storage.
Pakistan
A country that has rapidly expanded its renewable energy capacity, especially solar, in recent years, helping to offset the impact of disruptions to its fossil fuel imports.
What they’re saying
“China’s approach to energy sector development and geopolitics has been completely validated by the Iran conflict.”
— Sam Reynolds, with the U.S.-based Institute for Energy Economics and Financial Analysis
“They are at the very forefront of this, more so than any other countries in the world, certainly more so than the United States.”
— Li Shuo, director of the Asia Society Policy Institute’s China Climate Hub
What’s next
As the Iran conflict continues, the global energy crisis is expected to further accelerate the transition to renewable energy and clean technologies, with China well-positioned to capitalize on this trend through its dominant position in these industries.
The takeaway
The Iran war has exposed the vulnerabilities of the world’s reliance on fossil fuels, validating China’s long-term strategy of investing heavily in renewable energy, electric vehicles, and battery technology. This crisis is likely to cement China’s global leadership in clean tech industries, widening the gap with the U.S. which has favored a fossil fuel-based approach to energy security.
