This paper analyses developments in China’s climate change diplomacy from the perspective of business power and conflict theory.It does so by:(i) accounting for the processes of clean energy industry policy and development in China;(ii) introducing the concept of business power and placing it in the context of climate change;(iii) applying the business power concept to China explore how the development of clean energy industry is expanding China’s policy options and changing its bargaining position;and(iv) taking stock of developments thus far and assessing future prospects.It will thereby test both the theoretical proposition that the business power concept is applicable to the Chinese situation,and the empirical proposition that the ongoing development of the national clean energy sector is crucial to China’s bargaining position at the international level. This paper analyzes developments in China’s climate change diplomacy from the perspective of business power and conflict theory. It does so by: (i) accounting for the processes of clean energy industry policy and development in China; (ii) introducing the concept of business power and placing it in the context of climate change; (iii) applying the business power concept to China explore how the development of clean energy industry is expanding China’s policy options and changing its bargaining position; and (iv) taking stock of developments thus far and assessing future prospects. It will therefore test both the theoretical proposition that the business power concept is applicable to the Chinese situation, and the empirical proposition that the ongoing development of the national clean energy sector is crucial to China’s bargaining position at the international level.