{"id":310710,"date":"2025-08-02T01:36:17","date_gmt":"2025-08-02T01:36:17","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/310710\/"},"modified":"2025-08-02T01:36:17","modified_gmt":"2025-08-02T01:36:17","slug":"why-the-us-is-letting-china-win-on-energy-innovation","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/310710\/","title":{"rendered":"Why the US is letting China win on energy innovation"},"content":{"rendered":"<p>During the cold war, the US and Soviet Union were locked in a desperate race to develop cutting\u2011edge technologies like long-range missiles and satellites. Fast forward to today and the frontiers of global technology have pivoted to AI and next\u2011generation energy. <\/p>\n<p>In one domain, AI, the US has far outpaced any other nation \u2013 though China looks to be <a href=\"https:\/\/theconversation.com\/deepseek-what-you-need-to-know-about-the-chinese-firm-disrupting-the-ai-landscape-248621\" target=\"_blank\" rel=\"noopener\">closing the gap<\/a>. In the other, energy, it has just tied its shoelaces together. The reason isn\u2019t technology, economics or, despite the government\u2019s official line, even national security. Rather, it is politics.<\/p>\n<p>Since returning to the White House in January, Donald Trump <a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/01\/unleashing-american-energy\/\" target=\"_blank\" rel=\"noopener\">has handed out<\/a> huge wins to the coal and oil and gas industries. This is <a href=\"https:\/\/theconversation.com\/us-election-trump-is-threatening-to-turn-back-the-tide-on-americas-environmental-laws-and-reverse-climate-progress-242456\" target=\"_blank\" rel=\"noopener\">no great surprise<\/a>. Trump has long been supportive of the US fossil fuel industry and, since his reelection, <a href=\"https:\/\/www.nytimes.com\/2025\/01\/25\/climate\/epa-staff-oil-gas-chemical-industry-lobbyists.html\" target=\"_blank\" rel=\"noopener\">has appointed<\/a> several former industry lobbyists to top political positions. <\/p>\n<p>According to the Trump administration, national security <a href=\"https:\/\/apnews.com\/article\/trump-coal-ai-data-centers-energy-dominance-693e2604785c07ff790d9afd2e06d543\" target=\"_blank\" rel=\"noopener\">requires gutting support<\/a> for renewable energy while performing political CPR on the dying coal industry.<\/p>\n<p>The reality is that, since 2019, the US has produced more oil, gas and coal annually than Americans <a href=\"https:\/\/www.eia.gov\/energyexplained\/us-energy-facts\/\" target=\"_blank\" rel=\"noopener\">want to use<\/a>, with the rest exported and sold overseas. It is currently one of the <a href=\"https:\/\/www.theguardian.com\/environment\/article\/2024\/jul\/24\/fossil-fuel-liquified-natural-gas-louisiana\" target=\"_blank\" rel=\"noopener\">most prolific exporters<\/a> of fossil fuels in the world. <\/p>\n<p>In short, the US does not have an energy security problem. It does, however, have an energy cost problem combined with a growing climate change crisis. These issues will only be made worse by Trump\u2019s enthusiasm for fossil fuels.<\/p>\n<p>            <img decoding=\"async\" alt=\"Trump, surrounded by coal-industry representatives, speaks after signing an executive order.\" class=\"lazyload\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/08\/file-20250722-56-pn0odl.jpg\"  \/><\/p>\n<p>              Trump speaks after signing an executive order to expand the mining and use of coal inside the US in April 2025.<br \/>\n              <a class=\"source\" href=\"https:\/\/epaimages.com\/search.pp?flush=1&amp;multikeyword=trump%20and%20coal&amp;startdate=&amp;enddate=&amp;autocomplete_City=&amp;metadatafield5=&amp;autocomplete_Country=&amp;metadatafield44=&amp;autocomplete_Person=&amp;metadatafield39=\" target=\"_blank\" rel=\"noopener\">Al Drago \/ EPA<\/a><\/p>\n<p>Over the past six months, the Trump administration has upended half a decade of green industrial policy. It <a href=\"https:\/\/www.whitehouse.gov\/fact-sheets\/2025\/07\/fact-sheet-president-donald-j-trump-ends-market-distorting-subsidies-for-unreliable-foreign-controlled-energy-sources\/\" target=\"_blank\" rel=\"noopener\">has clawed back<\/a> billions of US dollars in tax credits and grants <a href=\"https:\/\/www.forbes.com\/sites\/energyinnovation\/2024\/08\/19\/inflation-reduction-act-two-years-later-historic-industry-investment\/\" target=\"_blank\" rel=\"noopener\">that were supercharging<\/a> American energy innovation. <\/p>\n<p>Meanwhile, China has roared forward. Beijing has doubled down on wind, solar and next\u2011generation batteries, <a href=\"https:\/\/www.theguardian.com\/world\/article\/2024\/jul\/11\/china-building-twice-as-much-wind-and-solar-power-as-rest-of-world-report\" target=\"_blank\" rel=\"noopener\">installing more<\/a> wind and solar power in 2024 than the rest of the world combined. To China\u2019s delight, the US has simply stopped competing to be the world\u2019s clean energy powerhouse. <\/p>\n<p>Roughly <a href=\"https:\/\/carnegieendowment.org\/research\/2024\/10\/winning-the-battery-race-how-the-united-states-can-leapfrog-china-to-dominate-next-generation-battery-technologies?lang=en\" target=\"_blank\" rel=\"noopener\">one-in-five<\/a> lithium\u2011ion batteries, a key component in clean energy products, are made in China. Many of the newest high\u2011tech batteries are also being developed and patented there. While Trump repeats the tired mantra of <a href=\"https:\/\/www.scientificamerican.com\/article\/in-state-of-the-union-speech-trump-touts-fossil-fuels-and-critical-minerals\/\" target=\"_blank\" rel=\"noopener\">\u201cdrill, baby, drill\u201d<\/a>, China is building factories, cornering the market for <a href=\"https:\/\/theconversation.com\/trump-threatens-to-disrupt-the-worlds-critical-minerals-supply-but-there-are-reasons-to-be-positive-249058\" target=\"_blank\" rel=\"noopener\">critical minerals<\/a> such as lithium and nickel, and locking in export partners.<\/p>\n<p>At the same time, household energy spending in the US is <a href=\"https:\/\/energyinnovation.org\/report\/updated-economic-impacts-of-u-s-senate-passed-one-big-beautiful-bill-act-energy-provisions\/\" target=\"_blank\" rel=\"noopener\">expected to increase<\/a> by US$170 (\u00a3126) each year between now and 2035 as a result of Trump\u2019s <a href=\"https:\/\/www.whitehouse.gov\/articles\/2025\/07\/president-trumps-one-big-beautiful-bill-is-now-the-law\/\" target=\"_blank\" rel=\"noopener\">One Big Beautiful Bill Act<\/a>. The bill, which includes sweeping changes to taxes, social security and more, will raise energy costs mainly because it strips away support for cheap and abundant renewables like wind and solar.<\/p>\n<p>Household energy costs could go up even more as Trump threatens to make large\u2011scale clean energy development much more onerous by putting up <a href=\"https:\/\/www.politico.com\/news\/2025\/07\/18\/definitely-playing-favorites-interior-memo-could-strike-dire-blow-to-wind-and-solar-projects-00460801\" target=\"_blank\" rel=\"noopener\">bureaucratic hurdles<\/a>. The administration recently issued a directive requiring the secretary of the interior to approve even routine activities for wind and solar projects connected to federal lands. <\/p>\n<p>Meanwhile, climate change is hitting American communities harder with each passing year. As recent <a href=\"https:\/\/theconversation.com\/trumps-budget-cuts-are-adding-to-risk-in-life-threatening-floods-and-emergencies-260710\" target=\"_blank\" rel=\"noopener\">flooding in Texas<\/a> and urban fires in <a href=\"https:\/\/theconversation.com\/la-fires-show-the-human-cost-of-climate-driven-whiplash-between-wet-and-dry-extremes-247133\" target=\"_blank\" rel=\"noopener\">California<\/a> and Hawaii have shown, fewer Americans still have the luxury of ignoring climate change. <\/p>\n<p>As the cost of these disasters mount \u2013 <a href=\"https:\/\/www.ncei.noaa.gov\/access\/billions\/\" target=\"_blank\" rel=\"noopener\">US$183 billion<\/a> in 2024 \u2013 the grifting of the oil and gas industry will become an increasingly bitter pill for the nation to swallow.<\/p>\n<p>China\u2019s foresight<\/p>\n<p>China, with its authoritarian government, is less susceptible to the petroleum-obsessed dogma fueling the Republican party. It does not have prominent leaders like US politician Marjorie Taylor Greene, <a href=\"https:\/\/www.independent.co.uk\/news\/world\/americas\/us-politics\/pete-buttigieg-marjorie-greene-electric-cars-b2196087.html\" target=\"_blank\" rel=\"noopener\">who previously warned<\/a> that Democrats are trying to \u201cemasculate the way we drive\u201d by advocating for electric vehicles. Rather, China\u2019s leaders are seeing green \u2013 not in the environmental sense, but in a monetary one.<\/p>\n<p>It is generally cheaper nowadays to build and operate renewable energy facilities than gas or coal power stations. According to a June 2025 <a href=\"https:\/\/www.reuters.com\/sustainability\/climate-energy\/renewable-energy-remains-cheapest-power-builds-new-gas-plants-get-pricier-2025-06-16\/\" target=\"_blank\" rel=\"noopener\">report by Lazard<\/a>, an asset management company, electricity from new large-scale solar farms costs up to US$78 per megawatt hour \u2013 and often much less. The same electricity from a newly built natural gas plants, by comparison, can cost as much as US$107 per megawatt hour.<\/p>\n<p>Across the world, utilities are embracing clean energy, choosing lower costs for their customers while reducing pollution. China saw the writing on the wall <a href=\"https:\/\/www.washingtonpost.com\/climate-solutions\/2025\/03\/03\/china-renewable-energy-green-world-leader\/\" target=\"_blank\" rel=\"noopener\">decades ago<\/a>, and its early investments are bearing a rich harvest. It now produces <a href=\"https:\/\/www.weforum.org\/stories\/2024\/06\/china-electric-vehicle-advantage\" target=\"_blank\" rel=\"noopener\">more than half<\/a> of the world\u2019s electric vehicles and the vast majority of its solar panels. <\/p>\n<p>            <img decoding=\"async\" alt=\"Wind turbines on top of green mountains.\" class=\"lazyload\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/08\/file-20250722-56-jkf1wr.jpg\"  \/><\/p>\n<p>              The Heyuan Queyashan wind farm near the Chinese city of Heyuan, Guangdong province.<br \/>\n              <a class=\"source\" href=\"https:\/\/www.shutterstock.com\/image-photo\/heyuan-queyashan-wind-farm-guangdong-china-1669665955\" target=\"_blank\" rel=\"noopener\">maple90 \/ Shutterstock<\/a><\/p>\n<p>The US can still compete at the leading edge of the energy sector. American companies are developing innovative new approaches to geothermal, battery recycling and many other energy technologies. <\/p>\n<p>But in the battle to become the world\u2019s 21st-century energy manufacturing powerhouse, the US seems to have walked off the playing field.<\/p>\n<p>In Trump\u2019s telling, the US may have simply exited one race and reentered another. But the fossil fuel industry \u2013 financially, environmentally and ethically \u2013 is obviously a dead end.<\/p>\n<p>            <img decoding=\"async\" alt=\"Imagine weekly climate newsletter\" class=\"lazyload\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/08\/file-20250110-17-yge7uv.png\"  \/><\/p>\n<p><strong>Don\u2019t have time to read about climate change as much as you\u2019d like?<\/strong><br \/>\n<br \/><a href=\"https:\/\/theconversation.com\/uk\/newsletters\/imagine-57?utm_source=TCUK&amp;utm_medium=linkback&amp;utm_campaign=Imagine&amp;utm_content=DontHaveTimeTop\" target=\"_blank\" rel=\"noopener\">Get a weekly roundup in your inbox instead.<\/a> Every Wednesday, The Conversation\u2019s environment editor writes Imagine, a short email that goes a little deeper into just one climate issue. <a href=\"https:\/\/theconversation.com\/uk\/newsletters\/imagine-57?utm_source=TCUK&amp;utm_medium=linkback&amp;utm_campaign=Imagine&amp;utm_content=DontHaveTimeBottom\" target=\"_blank\" rel=\"noopener\">Join the 45,000+ readers who\u2019ve subscribed so far.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"During the cold war, the US and Soviet Union were locked in a desperate race to develop cutting\u2011edge&hellip;\n","protected":false},"author":2,"featured_media":310711,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5311],"tags":[49,978,659],"class_list":{"0":"post-310710","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-united-states","8":"tag-united-states","9":"tag-us","10":"tag-usa"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114956611570423879","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/310710","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=310710"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/310710\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/310711"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=310710"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=310710"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=310710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}