In Europe, Chinese dominance over this production — as well as in the extraction of critical resources required for the green transformation — has become a headache. On the one hand, windmills, solar panels and cheap plug-in cars are needed to meet decarbonization objectives but, at the same time, there’s a need to avoid excessive dependence and protect national industries from a Chinese sector that’s strongly subsidized by Beijing.

China is responsible for 60% of the world’s wind turbine manufacturing capacity, more than 80% of solar cell manufacturing, and almost 40% of heat pump manufacturing.

According to the Lowy Institute, the Asian giant has 7% of the world’s lithium reserves, but processes nearly 70% of global lithium. And according to Reuters, it also refines more than 90% of the world’s graphite.

Michael Pettis, an expert on Chinese finance. He believes that, to undertake this green transition, at least in the short-term, it would be better to buy from the country that has the greatest comparative advantage in the production of these goods. That is, China. But the long-term is another matter. “These importing countries have to make a calculation. What’s more worthwhile: this flood of products that are cheap, but create unemployment in the [Eurozone]? Or the cost of imposing tariffs?”