China is in the middle of a tech boom and cleantech investors are poised to benefit. By 2020, the region will see the largest reduction in emissions and the greatest increase in renewable energy capacity in the world.
China is already a major region for cleantech investors, but it’s poised to become even bigger.Frost & Sullivan’s report “The Clean Tech Market Reaching Its Stride: 2014 to 2020” projects that China will become the world’s leader in cleantech by 2020.
Booming time for China and tech
In past decades, China was seen as lagging behind the United States in terms of technology. While Silicon Valley was developing Google (NASDAQ:GOOGL) and Apple (NASDAQ:APPL), China was still working to connect its massive population to the internet. However, this has changed, as prosperity in China has nurtured progress and innovation in its tech sector.
According to Wired, higher education in China has increased sevenfold since 2000, with 7 million individuals graduating from college this year. This increase in young educated individuals is creating an entrepreneurial culture that bodes well for the challenges of cleantechnology. Venture capitalists invested record breaking $15.5 billion into Chinese startups last year. Although this investment still lags behind the U.S. (which saw $48 billion in venture capital in 2014), it is enough to propel the Chinese tech sector forward.