Iran Conflict Boosts China's Green Energy and Korea/Europe's Defense Industries

Central News Agency, Washington, April 12 (Comprehensive Foreign Report) – The Iran conflict has disrupted oil and natural gas exports from the Middle East, prompting countries to accelerate the adoption of renewable energy, thereby driving demand for China's green energy technology. After Iran's consumption and the inability of U.S. production to meet demand, Gulf countries are turning to South Korea, Ukraine, and other nations to replenish their armaments. The Wall Street Journal, citing data from the International Energy Agency (IEA), reports that China accounts for approximately 80% of global solar technology manufacturing and over 70% of global electric vehicle production. According to Chinese customs data compiled by the clean energy think tank Ember, China's exports of green energy technology (including solar panels, electric vehicles, wind turbines, and batteries) approached US$20 billion in February this year. Euan Graham, an analyst at Ember, said: "China already completely dominates [green energy]. After this crisis, they are likely to be the big winners. We do expect a significant surge in China's clean technology exports." Although U.S. President Trump stated in early April that countries should buy more U.S. oil and natural gas to cope with Middle East uncertainty, the biggest key difference between renewable energy and fossil fuels is that buyers only pay once for a solar power plant or wind turbine, while oil and natural gas must be continuously imported. Furthermore, some countries, including China, that have accelerated the transition to renewable energy in the past are in a better position to deal with the current crisis. For example, over 50% of China's electricity comes from domestically mined coal, and as much as 40% comes from low-carbon power generation. Since the outbreak of the Iran war, the trend of renewable energy transition has accelerated. As rising fuel prices increase the attractiveness of plug-in vehicles, China's electric vehicle exports more than doubled in March this year compared to the same period last year; British power supplier Octopus Energy stated that solar panel sales in March increased by 78% compared to February. Sales of heat pumps (low-carbon technology that extracts heat from the air to heat homes) also doubled in the same month. Beijing designated solar energy and electric vehicles as strategic industries many years ago, and local governments invested funds in related industries, leading to fierce competition. As a result, China now dominates related technologies but suffers from oversupply and eroded profits for domestic enterprises. However, after the outbreak of the Iran conflict, low prices are highly attractive to overseas buyers, which has turned into a positive. A renewable energy product exporter in Qingdao, China, said that his sales in March this year were about three times that of the same period last year. In addition, after six weeks of air strikes depleting air defense inventories, Saudi Arabia, Qatar, and the United Arab Emirates plan to purchase South Korean air defense systems, Ukrainian drones, and British micro-missiles. This wave of foreign procurement highlights the current predicament of the U.S. military industry's inability to keep up with global demand during wartime. Informed sources revealed that Saudi Arabia has contacted Japan, which produces Patriot air defense system interceptor missiles, and inquired about whether orders for M-SAM systems from South Korean companies Hanwha and LIG Nex1 could be delivered earlier. M-SAM is a South Korean-made medium-range air defense weapon that the UAE has used to shoot down Iranian drones this time. Saudi Arabia also signed a defense cooperation agreement with Ukraine, focusing on weapons production and experience sharing; Qatar also signed a cooperation agreement with Ukraine, and officials recently visited a drone interception training ground in Ukraine. However, Ukrainian weapons manufacturers may not have surplus inventory or export capabilities, as they must first meet high domestic demand, and exports also require government approval. The Wall Street Journal directly stated that the core problem is that U.S. arms production cannot keep up with global demand during wartime. The Trump administration facilitated US$23 billion in U.S. military purchases by the UAE, Kuwait, and Jordan, including air defense systems, radar, and Patriot PAC-3 missiles, but most deliveries will take several years. (Translator: Chen Yi-wei) April 13, 2026