China's energy transition as a wake-up call – Why we must act now to remain competitive
- Frank Hummel
- 15 hours ago
- 2 min read
China's energy transition as a wake-up call – Why we must act now to remain competitive
While we in Europe are still debating approval procedures, funding models, and technological openness, China has long since established the facts: The country is electrifying its economy at a rapid pace – from energy generation to mobility to industrial production. What is often overlooked is that this development is not only a contribution to global climate protection, but above all a smart economic move.
Renewable energies reduce production costs
China has been systematically investing in photovoltaics, wind power, battery storage, and electric mobility for over a decade. The result: a growing supply of affordable, CO₂-free electricity – provided locally, independent of fossil fuel imports. This not only massively reduces energy costs but also makes Chinese companies more globally competitive. This recent article in the Financial Times impressively demonstrates this with numerous concrete figures and developments.
Technology leadership secures market share
Whether solar modules, battery systems, or electric vehicles – Chinese companies already dominate many markets. And this is no coincidence. This technological progress is the result of a clear political strategy focused on scaling, standardization, and market penetration. Today, China doesn't just sell products – it sets standards.
What does this mean for companies in Germany and Europe?
Dependence on fossil energy—whether directly through gas and oil or indirectly through energy-intensive processes—is increasingly becoming a disadvantage for locations. Those who fail to invest in their own electrification now risk falling behind in the face of rising CO₂ costs and global competition. At the same time, enormous opportunities arise:
By combining photovoltaics, electric heating (e.g. infrared or heat pump depending on requirements) and e-mobility, energy and operating costs can be significantly reduced.
Smart building and charging infrastructure solutions enable flexible, decentralized energy supply.
Customers, investors and partners increasingly view sustainability as a key success factor.
What applies in the global system also applies to every single company
What China is doing at the national level can be applied directly to companies of all sizes: Those who invest now in CO₂-free energy supply will secure permanently low operating costs, reduce risks, and become more resilient to geopolitical developments. The time to actively shape their own energy base is now.
Time to act
We in Germany are facing a crucial crossroads: wait or shape the future. Those who invest now not only secure economic advantages but also actively shape the future – resilient, climate-neutral, and independent.
With Frank-Hummel-Consulting, I would be happy to support you in identifying your company's potential, developing individual strategies, and successfully implementing measures – from energy-related site assessments to the implementation of CO₂-free systems.
About the Financial Times article:
