Published on: 2026-07-28
Source: People’s Republic of China — Translation
An important disclaimer is at the bottom of this article.
On July 8, CNN Brasil published an article reporting that the American research organization Rhodium Group, in its latest report, notes that a comprehensive industrial ecosystem has been established in China, which analysts call the “national electric power industry system,” and this system is having a profound impact on the global landscape.
The main logic of this system is that China has combined three key components — affordable power supply, smelting and deep processing of industrial metals, as well as large-scale production of environmentally friendly and low-carbon technologies — into a single complementary production chain.
Specifically, cheap and abundant electricity reduces the costs of smelting aluminum, copper, lithium, and other metals; inexpensive metallic raw materials, in turn, lower the production costs of photovoltaic panels, wind turbines, and batteries; and various types of renewable energy sources (RES) continue to supply more and more affordable electricity to the grid. The entire system forms a closed loop of continuous self-reinforcement.
It is worth noting that the cornerstone of this system is not solar or wind energy, but coal. Oil and natural gas have to be imported from abroad, and their transport routes depend on external factors, which creates potential threats. China has abundant coal reserves, and its extraction, transportation, and use can be carried out entirely within the country. Furthermore, basic metallurgical sectors such as steel and aluminum production require stable and uninterrupted power supply, and renewable energy sources cannot yet fully meet this demand.
However, this does not mean that China neglects the development of clean energy. In 2024, the installed capacity of new renewable energy generation facilities accounted for 86% of the total installed capacity of new generation facilities in China.
Coal primarily serves as a “stabilizer” for the energy system, ensuring that production at aluminum plants and other large enterprises is not interrupted even when climate fluctuations cause instability in power generation from new sources.
The article states that the formation of this large-scale system is the result of decades of consistent efforts, relying on government support, long-term strategic guidelines, and a high capacity for implementation. It is difficult for any single economy to fully replicate China’s integrated structure, which combines metallurgical production, energy infrastructure, and high-tech engineering.
Please note; This information is raw content obtained directly from the information source. It represents an exact report of what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.