Who Still Says China Developed Because of IP Theft ?
China's rise in energy capacity is availability of cheap ectricity at scale, a core requirement for development
China’s rise from an energy-starved nation in 1985 to the foremost power in global electricity by 2024 forms the very bedrock of its industrial ascent, its command of manufacturing, and the structure of its entire economy. In 1985, China produced just 410 terawatt-hours of electricity. By 2024, that figure reached 10,072 terawatt-hours. That is more than the electricity output of the United States and India combined. No country has ever scaled energy production at this pace in such a short span of time.
To understand the impact, 10,072 terawatt-hours is 10.072 million gigawatt-hours. That amount of power, if distributed globally, could run entire nations, and is enough to operate factories, fuel electric transport, light cities, and run industrial zones on a scale few economies can match. Electricity is the core requirement for development, forms the foundation of it. Electricity powers every factory, sustains every data centre, drives every logistics hub, and no city runs without power. China’s rise in energy capacity stands as the direct result of purposeful national planning and intent. Beijing linked electricity policy to industrial expansion. Instead of importing finished goods, Beijing focused on scaling domestic manufacturing capacity. That meant securing cheap, reliable electricity as a national priority. State-led investment in power plants, transmission lines, and grid expansion was tied directly to economic planning. Power availability became the base on which the export economy was built.
Cheap electricity has kept production costs low. When input energy is affordable, finished goods remain price-competitive. That is why China dominates in low-margin, high-volume manufacturing. Textile mills, plastics factories, hardware workshops, electronics assembly lines, battery plants drive vast export earnings, measured in billions in export value. Most are located in regions far from major cities, which run on bulk electricity. Cheap electricity has also enabled scale. Small and medium enterprises make up a massive share of China’s manufacturing ecosystem. Most are not globally known, but their combined output forms the backbone of global supply chains. From simple toys sold in African markets to consumer electronics sold in Europe, energy access fuels their operations. Without cheap power, China’s role as the global factory floor would not exist.
The economic result has been low-cost production driven by energy abundance leads to low-cost exports. Those exports bring in foreign revenue, expand trade surpluses, and fund domestic reinvestment. Even in sectors with narrow margins, volume keeps the economy moving. China's GDP grew upon the steady labour of millions of powered industrial units, rather than the spectacle of towering megaprojects. Between 2000 and 2023, China's electricity generation grew by over 900%. No other G20 country comes even close. The country has invested in coal, hydro, nuclear, wind, and solar in parallel, not sequentially. This multi-source approach means factories keep running even as fuel mixes shift. While critics focus on emissions, the economic story is simpler. Consistent power supply means consistent output. That brings reliable export volumes and stable employment.
The link between electricity and economic strength is not an abstract one. When energy is cheap and available at scale, barriers to entry drop. A small manufacturer can grow without massive capital if the grid can support it. From the beginning, China shaped its industries through deliberate structural choices. 'Made in China' stands as the outcome of that national design. The numbers confirm the scale of that strategic choice. In 1985, China’s electricity output was less than 3% of global supply. By 2024, it accounts for around 30%. No other country has grown its energy base that rapidly while also becoming the world’s top exporter. The energy model to produce more, price it low, and link it to industrial zones, created economic leverage that no Western market has replicated in recent decades.
This is why supply chains continue to rely on China despite trade tensions. The energy infrastructure is already in place, whilst alternatives are limited. No other country can match the combination of low-cost electricity, built-out logistics, and scale-ready labour. As long as that remains the case, the structural advantage holds. China’s rise in electricity production stands as a domestic achievement and a cornerstone of its global trade role
Energy has become the backbone of China’s economic strength. With the world’s largest electricity generation capacity, over 2,900 gigawatts by 2024, China powers the factories that produce everything from electronics to heavy machinery. Global trade flows to China not because of theft of IP's or subsidies, but because no other economy delivers industrial output at such scale and cost efficiency. China's vast power grid, built through decades of coordinated state investment, did more than electrify cities, it drove down production costs and stocked the shelves of the world.
Attempts by Western governments to disrupt this foundation, whether through carbon tariffs, supply chain restrictions, or climate policies aimed at curbing industrial output, have largely failed. China has expanded renewable energy faster than any other nation, while continuing to maintain the coal and hydro capacity necessary to keep its industrial core running. The result is an energy system that is not only massive, but resilient and very central to the global economy.
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