Southeast Asia Is Becoming a Major Market for China’s Clean Tech
Southeast Asian countries have spent more than $20 billion on Chinese-made clean technology so far in 2026, putting ASEAN at the center of China’s expanding clean-tech export market. The purchases include solar equipment, batteries, electric vehicles, grid components, and heating and cooling systems. The figure is already 50% higher than during the same period in 2025, according to data from energy think tank Ember cited by Reuters.
Solar imports alone reached $4.1 billion, almost 90% higher than a year earlier. Southeast Asia also imported just under $7 billion in energy-storage batteries, about $1.6 billion in grid components, $1.2 billion in heating and cooling equipment, and $6.3 billion in electric vehicles. The Philippines, Malaysia, Indonesia and Vietnam have been among the strongest markets for Chinese solar equipment.
The trend reflects more than a shift in trade flows. Southeast Asia is rapidly expanding its cities, factories, data centers and transport networks, all of which require more electricity. The International Energy Agency expects the region to account for nearly 20% of global energy-demand growth through 2035 under current policy settings. Electricity demand is already growing twice as fast as overall energy use.
That creates a natural market for Chinese manufacturers. China has developed enormous production capacity for solar panels, batteries, electric vehicles and electrical equipment, while Southeast Asian economies need these products to expand their energy systems and reduce their exposure to imported fossil fuels.
The business opportunity, however, is not limited to importing equipment.
A solar panel sitting in a warehouse has little value until someone designs the system, installs it, connects it properly, monitors its performance and services it. The same applies to battery storage and EV charging equipment. This creates room for local distributors, engineering companies, installers, maintenance providers, financing companies and software businesses.
Chinese manufacturers are already moving in this direction. SKYWORTH Solar, for example, has expanded its local operations in Southeast Asia. Its 2026 expansion includes more than 20 local agents and four service providers in Vietnam, while 16 Malaysian enterprises have entered into cooperation agreements with the company. It has also established a Bangkok regional hub and expanded into commercial solar and energy storage.
TCL is another example. Its photovoltaic business has been developing local distribution and installer networks, including a workshop for more than 100 solar partners in Thailand in late 2025. The company promotes integrated residential solar solutions rather than simply selling panels.
For Southeast Asian businesses, this creates several potential growth areas.
Distribution is one. The region is not a single uniform market. Regulations, electricity tariffs, financing conditions and customer preferences vary considerably between Vietnam, Thailand, Malaysia, Indonesia and the Philippines. Businesses that understand local markets and can provide reliable equipment and technical support can add value beyond simply importing products.
Installation and maintenance is another opportunity. As solar and battery systems become more widespread, customers will need qualified technicians for installation, troubleshooting, upgrades and replacement. This is particularly relevant in factories, warehouses, hotels, shopping centers and other commercial properties where system reliability directly affects operating costs.
Financing could become equally important. Many companies want lower electricity costs but cannot or do not want to make large upfront investments in solar and storage. Power purchase agreements, leasing and other financing structures can allow businesses to adopt equipment while spreading payments over time.
Grid infrastructure may offer an even larger long-term market. The IEA estimates that ASEAN will need more than $300 billion in investment in electricity grid expansion and modernization between 2025 and 2040. Cross-border connections through the ASEAN Power Grid are also intended to improve regional power trading and help integrate renewable energy.
Electric vehicles add another layer of. Chinese brands such as BYD, SAIC’s MG and Geely have become increasingly visible in Southeast Asian markets, while battery companies such as CATL are important players in the wider energy-storage supply chain. The IEA says EV sales in Southeast Asia will more than double in 2025 to around 500,000 units, representing nearly 20% of vehicle sales.
There are also risks. Southeast Asian markets have different certification rules, import procedures and technical standards. Grid capacity can limit how quickly rooftop solar and EV charging infrastructure can expand. Businesses also need to consider warranty support, spare parts, product certifications and the financial strength of suppliers before committing to a particular brand.
Buyers should also be careful about low-cost solar panels, batteries, inverters and EV equipment sold with questionable specifications. Fake products and misleading capacity claims can turn an apparently cheap purchase into an expensive failure. Established manufacturers with verifiable certifications, warranties and local service arrangements are generally easier to evaluate.
For entrepreneurs, the most interesting part of this trend may therefore be what happens after Chinese equipment arrives. The next layer of businesses will be built around installation, financing, distribution, maintenance, energy management and grid integration.
Southeast Asia is becoming an important destination for China’s clean-tech exports, but it is also becoming a market where local companies can build businesses around those products. The equipment may come from factories in China, but much of the economic value will be created locally through getting that equipment into factories, homes, vehicles and power networks and keeping it working for years.
