The United States government’s abrupt U-turn on cleaner, renewable sources of energy is not only hurting the environment. It could also be giving China a key strategic and economic advantage, according to The Wall Street Journal.
As the federal government in the U.S. has turned its back on renewable energy in favor of dirtier oil, gas, and coal, countries around the globe “are going to be even more reliant on Chinese technology to power their economies,” said Wally Adeyemo, a former deputy treasury secretary, per the Journal, which characterized the development as the U.S. “forfeiting.”
What’s happening?
Ever since the new administration took power in Washington, one of its top priorities has been pulling the plug on initiatives aimed at promoting cleaner, renewable energy, following 2024 reports that President Donald Trump asked oil companies to help him get re-elected. These new policies already have had a sweeping impact.
The so-called “Big Beautiful Bill,” which became law in July, reversed over $400 billion in subsidies that previously had been allotted to cleaner energy projects, from massive wind and solar installations to home solar panels. This reversal led to $22 billion of projects being canceled or delayed in the first half of 2025 alone, according to the Wall Street Journal.
Meanwhile, China has continued to race ahead in its attempts to dominate what it believes to be the energy of the future.
In just the first seven months of 2025, China brought online 277 gigawatts of wind and solar capacity. This amounted to four times the amount of new power production installed in the U.S. from all sources combined, the Journal reported.
Why is renewable energy in China important?
The race for renewable-energy supremacy is about far more than just helping the environment. In China, the transition to wind and solar has been more about economic necessity than sustainability concerns.
China “doesn’t aspire to export clean tech for the sake of climate-change ideology,” said David Fishman, an expert on Chinese energy, per the Wall Street Journal, saying that the Chinese companies instead just view it as good business to meet electricity demand with an affordable supply.
This vast disparity in renewable-energy capacity between the U.S. and China could have impacts that extend far beyond energy production and the environment. As countries race to develop artificial intelligence, they have been building the massive, power-hungry data centers complex AI models require to operate. As China’s new electricity production has surged ahead of that of the United States, it has given China a significant boost in the AI race, as well.
What’s being done about it?
Despite the changes in policy coming out of Washington, many experts in the U.S. continue to see renewables as the energy of the future, viewing the change in policies as slowing but not stopping the energy transition.
“If you went to bed the day before [government incentives for renewables took effect] and woke up yesterday, you’d still believe the transition is happening,” said Jonah Goldman of Generate Capital, an investment firm, per the Wall Street Journal.
To push for change at the political level, you can use your voice, contact your elected representatives, and vote for candidates that share your views on renewable energy.
To take things even further, regardless of the policies coming out of Washington, you can make a difference by driving an EV and installing solar panels on your home.
EnergySage takes the confusion out of home solar with easy-to-use online tools that allow you to compare quotes from vetted local solar installers and to see what rebates and other financial incentives are available in your area.
With federal tax credits for EVs ending Sept. 30, 2025, and solar tax credits expiring Dec. 31 (and those projects often taking 12 weeks to complete), you must act soon to take advantage of thousands of dollars in potential savings.
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