China's Strides In ‘Green Energy’ Play A Vital Role in Climate Change Cooperation Amid Renewable Energy Slowdown in the United States
Regardless of where you get your news, it’s likely you’ll see a story every now and then related to renewable energy and technology in China. More mainstream U.S.-based sources for foreign policy developments, such as the New York Times, BBC News, and CNN, frequently report updates in innovation and technology, arms proliferation, and trade deals. These topics are pertinent to China’s ever-influential role in the international order. Becoming increasingly relevant are China’s strides in renewable energy, an industry that the U.S. has fallen short due to an array of factors. Reduced outlets for research and awareness coupled with the American love for traditional fuel sources: fossil fuels and oil, are proven barriers to entry in the global renewables competition for the U.S.
In June, a New York Times article highlighted China’s advancements as the country takes a different approach to national security goals by exporting Chinese-made clean energy to the rest of the world. In addition to selling energy, China actively extends clean energy infrastructure across both hemispheres with EV and battery factories surfacing in Brazil, Thailand, and Morocco. This strategic supply chain internalization boosts China’s national industries and maintains market dominance in renewables through China’s exports and constant push toward “green” innovation.
In 2023, China hosted 60% of the world’s manufacturing capacity for renewable power sources (i.e., solar, batteries, wind). Last year alone, China had more wind turbines and solar panels installed than any country in the world combined. This rapid expansion facilitates numerous foreign direct investments for host countries, while bolstering China’s geopolitical leverage in nations where the U.S. lacks strong partnerships, especially in energy and FDI.
Admittedly, this isn’t anything new. China’s economic diplomacy, chiefly in African states, dates back decades. In 2013, China unveiled an ambitious foreign infrastructure plan involving nearly 150 countries across Asia, Africa, and the European Union, known as ‘One Belt One Road’ or the ‘New Silk Road.’ This initiative drives several key strategic alliances between China and 53 out of 54 African countries, according to Green Finance & Development Center. However, the BRI is frequently cited as a series of ‘debt traps’ that promote predatory lending practices. In 2023, 80% of China’s loans to developing countries went to nations already grappling with serious national debt, which raises concerns for China’s competitors about an overwhelming rise in dependence on Chinese capital.
On the other side of the world, a counteractive push for oil and natural gas stems from U.S.-driven policy. Since taking office in January, President Trump has orchestrated internal and external deals to keep the renewable revolution at bay. In July, the “One Big Beautiful Bill Act” proposed the termination of tax credits associated with clean energy production and investment. The legislation cites ‘green’ energy as unaffordable and unreliable, conveying that investment in renewable energy is a waste of taxpayer funds.
With less incentives, U.S. companies are taking a step back from the ‘green’ initiatives that are vital for shaping a sustainable transition for the United States and the world. Leading by example, General Motors reverted plans for electric motors to a nearly $1 billion V-8 gasoline engine rollout. Similarly, Americans are also dissuaded to go electric as Trump-issued tariffs hit EV companies hard and EV charger development halts nationwide. As China makes EVs cheaper for Chinese producers and consumers, the United States created barriers to purchase and manufacture cutting-edge ‘clean’ technology.
Of course, these policy developments only strengthen China’s foreign direct investment capabilities. Thus far, the BRI is extremely successful and continues to open doors for Chinese companies to expand, government access to natural resources, and, most importantly, tremendous revenue generation. With an estimated 60/40 breakdown of construction to investments, BRI engagement has generated $1.308 trillion since 2013, making it one of the most lucrative international deals of its caliber. For the U.S., the BRI challenges the U.S. dollar and its international dominance by strengthening the Renminbi (China’s currency) and aligning less internationalized governments with China’s agenda–both of which perpetuate the diminishing need for U.S.-backed funds and diplomacy.
With a strong (and growing) international presence in tech manufacturing and installation, China has also established several avenues for outsourcing resources and land to fund ‘green’ energy projects. In 2025, the BRI powered record ‘green energy engagement’ numbers with $9.7 billion in wind, solar, and waste-to-energy investments resulting in 11.9 GW of green energy worldwide. China’s successes threaten global influence and legitimacy for the United States, presenting another obstacle for Trump’s administration in the energy competition. Still, on the global front, Trump continues to push for traditional fuel. As early as March this year, Trump piloted a $44 billion gas deal, “pressing” Asian allies to join in on a robust natural gas shipping plan in efforts to maintain traditional energy demand in an age of energy innovation.
As the world’s largest producer of oil, the U.S.’ best interests are in growing the world oil market while China’s interests lie in developing the competing industry, renewables. Today, more than ever before, oil production comes at a great cost. As immense global warming looms, there are stunts in already insufficient resolution plans and little to no cooperation between the world’s two energy giants.
On the bright side, China’s push for a global ‘green’ energy market steers existing oil markets from further development and encourages investment in Chinese green energy infrastructure. Options like wind and solar energy are cheap, but the panels and turbines needed are more expensive. To make these technologies more affordable requires loans, installation, and human capital–all facets China brings to the energy deal table. So, the question is–will China’s assertiveness push the US’s recommitment to a ‘green mindset’, or are we stuck in a dangerous cycle of oil and gas sales and production?
This is difficult to predict given the dynamic policy sphere surrounding environmental sustainability and renewable energy development. The ‘One Belt One Road Initiative’ is operating for the 12th year and the United States has yet to deliver a parallel counterplan. In 2022, President Biden’s “Build Back Better World” (B3W) initiative rebranded to the Partnership for Global Infrastructure and Investment (PGII) in an attempt to compete with BRI rollouts. Though successful in facilitating US-backed investments in Sri Lanka and Angola, the PGII could not contend with the BRI’s growth in magnitude. Will this be the narrative in US-China energy rivalries? We’ll only know with time.