For the past decade Western countries have led the way in cleantech, but the reduction of government support for the sector is advancing China’s position as an international cleantech leader.
Due to the eurozone crisis, China can expect to see very little demand from European countries. However, demand from domestic Chinese companies may be enough to drive the growth of China’s cleantech industry in 2012.
The relative strength of Chinese cleantech is being widely recognized. Jan Dekker, Managing Director, Cleantech Ventures is amongst those who acknowledge global economic headwinds yet see great opportunities in China.
“I would expect that most of the trends we observe in the clean tech space in the coming year will be directly related to the global economic climate…I would expect to continue to see increased clean tech investment activity in the Asia Pacific region, in particular China which has demonstrated strong growth,” Dekker said.
China is leading the way as an international renewable energy giant. In the cleantech sector, China is providing both a new source of revenue for the West as well as cutting-edge technologies.
In 2011, clean energy financing in China was worth US$1.4 billion. Many deals have been made with Western companies which provide valuable intellectual property, products, expertise and contacts.
Companies wishing to capitalize on the cleantech sector in 2012 must identify partnerships and investment opportunities in China.