China can decarbonise the world – but even that won't fix its overcapacity problem

China is on track to meet global green-tech demand but needs to pivot from manufacturing to infrastructure. China needs to increase its investment in power infrastructure to reduce renewable curtailment and curb its reliance on carbon-intensive power sources. First, China needs to ramp up investment in its national power grid to increase power transmission capacity. Second, China needs to set more ambitious targets for energy storage capacity to support the functioning of the power grid. Finally, global demand for power infrastructure is rising. Given the rising share of renewable power, global power grid systems need to be upgraded as disturbances from weather events require greater grid stability. This will continue to boost China’s exports of electrical equipment, supporting the economy. Power infrastructure may even replace renewable equipment as a new source of trade revenue, as it is less sensitive and thus less likely to be a target of sanctions. By pivoting investment from renewable energy capacity to power-grid upgrades and equipment, China can shore up an otherwise underwhelming domestic economy, keep on track for its net-zero emissions targets and relieve geopolitical pressures.