China’s South Asia Trade Push: $257 Million in Energy Deals at 10th South博会
Beijing deepens economic ties with South Asia through green energy
The 10th China-South Asia Expo (南博会) opened in Kunming, Yunnan province, on June 13, 2026, with the Green Energy Pavilion signing 18 projects worth a combined 257 billion yuan ($35.4 billion) on the first day. The projects span wind power, solar photovoltaic, pumped hydro storage, and cross-border energy cooperation agreements with Pakistan, Bangladesh, Myanmar, and Sri Lanka.
The expo, held biennially since 2013, has become China’s primary platform for deepening economic relationships with South Asian nations. This year’s edition features 82 countries and regions, with a particular focus on clean energy infrastructure — a deliberate pivot from previous years’ emphasis on commodity trade.
Cross-border energy cooperation
The largest single deal involves a China-Pakistan joint venture for a 2 GW solar-plus-storage complex in Balochistan, valued at approximately $4.2 billion. The project, backed by China Three Gorges Corporation and Pakistan’s Private Power and Infrastructure Board, would be the largest solar installation in South Asia.
Other notable agreements include:
- A 500 MW offshore wind farm in Bangladesh’s Cox’s Bazar, developed by China Datang Corporation
- Grid interconnection feasibility studies between Yunnan province and Myanmar’s northern states
- A pumped hydro storage project in Sri Lanka’s central highlands, led by PowerChina
The Belt and Road energy dimension
China’s clean energy exports to South Asia are growing faster than any other trade category. In 2025, Chinese solar panel exports to South Asian countries reached $12.8 billion, up 67% year-on-year. Wind turbine exports grew 43% to $3.2 billion. The trend reflects both China’s manufacturing overcapacity in clean energy equipment and South Asia’s urgent need for power generation.
“South Asia needs 400 GW of new power capacity by 2030 to meet demand growth,” said Dr. Rajesh Koirala, an energy economist at Kathmandu University. “China is the only country that can supply the equipment at the scale and price point required.”
Geopolitical undertones
The energy deals carry geopolitical significance. By embedding Chinese equipment, standards, and financing into South Asia’s energy infrastructure, Beijing creates long-term dependencies that extend beyond commercial relationships. India, which views South Asia as its strategic backyard, has expressed concern about China’s growing energy footprint in the region.
The Indian Ministry of External Affairs issued a statement on June 12 noting that “energy partnerships should respect the strategic autonomy of recipient nations” — a veiled reference to China’s influence.
Sources
- 36kr, “第10届南博会现场签约超257亿元能源项目,” June 14, 2026
- China-South Asia Expo official program, Kunming, June 13-18, 2026
- India Ministry of External Affairs statement, June 12, 2026