The Global South is wiring up for an electric future
XLU•Global South economies have spent roughly $235 billion on imported Chinese clean energy technology since the start of 2024, including $25.3 billion on grid equipment and nearly $47 billion on solar systems. Their spending on Chinese electric vehicles reached $73.2 billion in the first eight months of 2026.
1. Grid upgrades accelerate
Emerging economies across Asia, Africa, Latin America and parts of the Middle East have accounted for more than half of global spending on three categories of Chinese clean energy technology since 2024, data from Ember shows. Spending on imported transformers, switch gear and transmission cables topped $25.3 billion, compared with $23.8 billion in the rest of the world.
2. Solar and cooling demand
Global South economies spent close to $26 billion on heating and cooling equipment since January 2024, compared with $21 billion elsewhere. They also spent nearly $47 billion on Chinese photovoltaic solar systems, representing 55.4% of global spending in that category since 2024.
3. EVs and storage gap
Emerging markets spent $73.2 billion on imported Chinese electric vehicles in the first eight months of 2026, up from $6 billion in the same months of 2023. They remain behind developed economies in battery storage spending, accounting for 29% of spending on Chinese batteries since 2024, though their spending rose from around $9 billion in January-August 2024 to $21 billion in those months this year.
