Investment in what most call clean technologies dropped by 17% over the first half of the year, as China switched from subsidies to a market-based approach to those industries, a report from Rhodium Group has revealed.
Investments in things such as wind and solar power rose in other parts of the world, but China's decline more than offset that growth because of China's position as the top investor in clean tech, far ahead of everyone else.
"Geographically, the decline ‌was driven by China, the world's largest cleantech investor, where a shift to market-based pricing put pressure on new renewable power investments," said the author of the report, Hannah Pitt, as quoted by Reuters.
"China's transition toward market-based pricing for new renewable generation in 2025 drove a rush of installations ahead of the deadline, followed by an uneven pullback. Beijing also phased out consumer EV purchase-tax exemptions starting January 2026," the report pointed out.
These decisions led to a sharp slump in alternative energy and electric transport investment of 49% for China, translating into $133 billion. This trend also slashed China's share of clean tech investment from 52% at the end of 2025 to 39% by June this year.

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