As the US Backtracks on Renewables, SE Asia Turns to China

Beijing has quietly become the dominant outside funder of clean energy across Southeast Asia amidst a retreat from clean energy financing by Washington. Belt and Road green energy commitments across Southeast Asia reached nearly $10 billion in the opening six months of 2025, bringing around 11.9 gigawatts of wind, solar, and waste-to-energy capacity online.

A large portion of this investment came from China, with the Asian economic and manufacturing giant providing capital, hardware, and construction crews at a time when alternatives have thinned considerably.

Under Trump, billions in climate commitments were canceled, cutting funds to international programs including the Green Climate Fund. Biden-era energy transition programs in Indonesia and Vietnam covered only a portion of actual needs and relied heavily on debt rather than direct assistance. Winding down U.S. Agency for International Development operations also stripped regional governments of expertise for structuring clean energy procurement, building transmission systems, and modeling regional interconnections.

Additionally, the Asia EDGE program pivoted toward expanding American gas export markets rather than filling the green energy gap. Southeast Asian nations were facing energy-related issues when the U.S. began its green energy financing retreat. The region holds substantial geothermal, wind, and solar capacity that’s waiting to be developed, but surging manufacturing and urban population growth have driven energy demand sharply upward in recent years.

As a result, SE Asia has been forced to keep coal embedded in the generation mix, at least until its renewable capacity is developed. These countries also represent roughly 5% of global emissions yet absorb disproportionate climate damage through stronger storms, coastal flooding, and longer dry seasons.

China addresses those issues directly by bundling concessional financing with Chinese-manufactured equipment, engineering teams, and logistical support. Energy Shift Institute Managing Director Putra Adhiguna says China’s advantage runs deeper than financing alone and expands into commanding the full production chain for solar modules and battery systems.

Foreign Ministry Spokesperson Guo Jiakun frames the arrangement as reciprocal, saying China’s industrial output helps partner governments accelerate energy transitions while feeding demand back into Chinese manufacturing. Officials consistently present the model as a shared benefit, emphasizing speed and scale as advantages that Western financing structures struggle to match.

The infrastructure footprint accompanying these deals is where analysts grow cautious. China Southern Power Grid runs substantial portions of the Lao transmission system, while State Grid Corporation holds equity in the Philippine grid operator. As these are not passive investments, the control over electricity networks that they come with carries influence that’s well beyond energy policy.

Smaller economies like Cambodia and Myanmar have particularly limited room to negotiate those terms. Adhiguna argues that recipient governments need clearly defined objectives before engaging Beijing, since poorly structured arrangements could generate limited spillover into local industries.

In the meantime, he says Washington’s erratic regional posture has already altered how Southeast Asian capitals evaluate American commitments, and that reputational damage could resist quick repair even if future administrations eventually try to reverse the Trump administration’s policies.

For-profit firms like Turbo Energy S.A. (NASDAQ: TURB) have an opportunity to explore Asian markets and see how they can make inroads into these countries that are rapidly transitioning their energy systems.

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