Leapfrogging the world: China's rise in EVs, green energy and biotech

Business Standard

a day ago

In the global race for technological supremacy, the spotlight has long fallen on Silicon Valley or Europe's innovation hubs. But behind the scenes, China is not merely catching up, it is rapidly emerging as a global frontrunner, spearheading transformative progress across electric vehicles (EVs), renewables, and biotechnology.
Fuelled by state-backed strategies, relentless innovation, and manufacturing muscle, China's ascent is not just changing industries, it is redefining the world's technological future.
EV boom: How China became the world's largest electric vehicle market
China now controls the world's largest EV market, selling over 11 million units annually and accounting for more than 50 per cent of global EV sales. Companies like BYD, NIO, XPeng, and Li Auto have aggressively expanded beyond Chinese borders, with BYD overtaking Tesla in total global EV sales in 2025.
China's dominance in EV exports is equally notable. In 2024, it shipped out 1.2 million EVs—surpassing Japan to become the world's top automobile exporter. Once mocked for low-cost knock-offs, Chinese EVs now compete on both price and advanced tech in Europe, Southeast Asia, and North America.
According to Bloomberg, China's EV sales reached 11 million units in 2024, capturing nearly two-thirds of the global market, compared to 17 per cent in Europe and just 7 per cent in the US. In Q1 2025 alone, Chinese EV sales rose 55 per cent to 1.64 million units, outpacing Europe's 28 per cent (574,000) and the US' 18 per cent (301,000).
What explains China's electric vehicle dominance?
At the heart of China's EV power lies control over battery technology. With 70 per cent of global EV production and two domestic giants, CATL and BYD, supplying 55 per cent of the world's batteries, China enjoys unmatched battery pricing and efficiency.
Fierce local competition has driven breakthrough innovations, bringing battery costs below $100/kWh for lithium iron phosphate (LFP) batteries, reaching price parity with combustion engines, a milestone still out of reach in the West.
China's vertically integrated supply chain accounts for 75 per cent of lithium-ion battery production, and dominates cobalt/lithium refining and cathode/anode materials. In contrast, European and US supply chains remain fragmented and face 20 per cent higher production costs.
Technologies like battery-swap stations and vehicle-to-grid (V2G) integration are giving Chinese EVs a technological and cost advantage.
How state strategy fuels China's EV ecosystem
Under the 'Made in China 2025' plan, China has built a powerful EV ecosystem through massive subsidies, sustained infrastructure investment, and long-term supply chain planning.
It already boasts 20 times more public EV chargers than the US, and four times as many as Europe.
China's renewable energy dominance breaks all global records
In the renewables sector, China's lead is even more formidable. As of mid-2025, its solar capacity stood at 887 GW, with wind at 521 GW. The country invested $625 billion in clean energy in 2024 alone, according to Reuters.
By comparison, the US has just 239 GW of solar, and the EU a combined 540 GW of wind and solar. In 2024, China added 445 GW of new renewables, 60 per cent of global additions.
It builds three out of every four solar and wind installations worldwide and is on track to exceed its 2030 emissions targets ahead of schedule.
China also manufactures over 80 per cent of the world's solar panels and dominates every stage of the solar and battery supply chain. Economies of scale, vertical integration, and heavy subsidies let Chinese producers outprice global competitors.
Chinese biotech: From copycats to cutting-edge drug developers
China's biotechnology sector is undergoing a dramatic transformation. Once known for generics, Chinese drugmakers are now innovating at scale.
Bloomberg's analysis of Norstella data shows that China had over 1,250 novel drug candidates in 2024, closing in on the US (1,440) and far ahead of the EU. Back in 2015, that number was just 160.
Chinese biopharma companies, once burdened with quality concerns, are increasingly earning approvals and partnerships with global regulators and pharma majors.
By 2024, Chinese firms accounted for 31 per cent of all innovative drug pipelines globally, second only to the US.
Policy reforms and returning scientists reshape Chinese biotech
China's shift began in 2015 with sweeping reforms to its drug regulatory framework, accelerating approvals, enforcing global data standards, and encouraging repatriation of overseas-trained researchers.
Coupled with the Made in China 2025 strategy, these efforts triggered a biotech investment boom. By 2024, China had overtaken the EU in expedited approvals from the FDA and EMA.
Faster drug approvals and global impact
Take Legend Biotech's cell therapy for blood cancer—marketed by Johnson & Johnson. It not only outpaced a US-made rival but also secured expedited review in multiple markets.
Although Chinese firms still focus on refining existing therapies more than inventing new ones, their innovation pipeline is expanding.
Of the world's top 50 companies with the most innovative drug candidates between 2020 and 2024, 20 are Chinese—up from just five in the prior five-year period.
Jiangsu Hengrui, once a generic drugmaker, now leads globally in the number of new drug candidates added.
Global pharma giants race to license Chinese innovations
Western pharma majors are rushing to partner with Chinese firms:
> Akeso Inc. licensed its cancer drug to Summit Therapeutics for $500 million upfront, seen as China biotech's 'DeepSeek moment'
> Pfizer signed a record $1.2 billion upfront deal in May 2025 with 3SBio Inc. for a cancer therapy
> Merck, AstraZeneca, and Roche have all snapped up Chinese drug assets
According to DealForma, such high-value licensing deals are growing in both number and value.
China's clinical trial edge: speed and scale
A key advantage for Chinese biotech is speed. Thanks to vast patient pools and centralised hospitals, trial recruitment in China happens twice as fast as in the US.
Lower costs allow companies to run multiple clinical trials simultaneously, boosting success odds. Since 2021, China has led the world in new clinical trial starts, ahead of the US, per GlobalData.
However, challenges remain. The FDA still requires multinational data, limiting the use of China-only trials for US approvals.
US reacts to China's biotech rise with new policy anxieties
As US-China tensions rise, China's biotech progress has drawn concern in Washington. A congressional report warned that the US may cede leadership in another strategic domain.
Policymakers are calling for tighter export restrictions and faster domestic drug approval processes.
The China model: What makes its rise hard to replicate
Across EVs, renewables, and biotechnology, China's strategy follows a clear pattern: centralised industrial planning, global supply chain dominance, technology at scale, and relentless execution speed.
For the West, the question is no longer if China can lead in innovation, but how soon, and how far.