A competition is occurring for dominance in the energy export market between the two largest economies globally: The US aims to have the world purchase its fossil fuels, while China seeks to promote its clean energy technologies worldwide.
The nation's shipments of electric cars, solar power systems, batteries, and other technology for reducing carbon emissions have been increasing for years. Exports reached a record high in August, totaling $20 billion in goods sent worldwide, as stated in a recent report from the think tank Ember.
“China achieved a historical high in cleantech exports despite a significant drop in technology prices,” stated Euan Graham, a data analyst at Ember.
The US, now a significant fossil fuel exporter, exported $80 billion in oil and gas overseas by July, the most recent month for which data is available. China sent $120 billion worth of green technology abroad during that time.
in oil shipments in 2024, based on the Energy Information Administration. However, China's clean technology exports exceeded by $30 billion.
Money only reveals part of the narrative. The cost of solar panels is decreasing, resulting in China exporting a greater quantity for every dollar made. August's solar export earnings were far from the peak reached in March 2023. However, the 46,000 megawatts of power capacity exported reached a new high.
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Importantly, China's sales to emerging markets are expanding swiftly. This year, over fifty percent of China's electric vehicle exports originate from countries outside the Organization for Economic Cooperation and Development, a group of wealthy nations.
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During President Donald Trump’s first term and subsequently under former President Joe Biden, the US advocated for increased oil and gas output.
Consequently, the nation swiftly boosted its oil and gas exports. Trump aims to boost production further in his second term by relaxing regulations while simultaneously undermining the green technology industry.
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It’s important to mention that China is a major importer of oil and gas, and its energy demands are so high that it utilizes the majority of the clean technology it produces. This quarter, China will sell a higher number of electric cars domestically than the total cars sold in the US, independent of fuel type. Conversely, the US is capable of fulfilling all its fossil fuel requirements.