China is leading the world in clean energy production, having invested heavily in expanding its renewable energy capacity for several decades. With a net-zero aim for 2060, China is continuing to ramp up its clean energy investments to gradually decrease its reliance on fossil fuels. This is a trend that is being seen worldwide, as several regions rapidly increase their renewable energy capacity.
However, over the last year, the United States has moved away from a policy of renewable energy expansion to focus on boosting fossil fuel production, which could lead it to fall behind in the global clean energy race.
China is Leading in Clean Energy Globally
China has long been known as the global leader in renewable energy production. Its wind and solar electricity generation rose by 25% in 2024, a trend that continued in 2025. In the 12 months to June 2025, China produced more electricity from wind and solar power than from nuclear, hydro, and bioenergy combined, compared to four years ago when wind and solar generated around half as much electricity as other clean sources combined. This demonstrates just how rapidly China is expanding its clean energy industries.
Beijing is spending more money on expanding its renewable energy capacity than any other country worldwide, investing $625 billion in 2024, compared to a global total of $2 trillion, according to a 2025 report from the think tank Ember. Meanwhile, China’s installed battery storage tripled between 2021 and 2024, while grid investment totaled $85 billion in 2024, marking a 25% increase from 2019. China is also rapidly expanding its electric vehicle (EV) fleet, with several countries around the globe now showing interest in the country’s EVs.
President Xi Jinping previously set the target of achieving net-zero carbon emissions by 2060, and, in September, he announced the aim to reduce China’s greenhouse gas emissions by between 7% and 10% by 2035.
In addition, Beijing’s latest five-year plan emphasizes its aim for self-reliance in energy, critical minerals, and advanced technologies, such as semiconductors and artificial intelligence.
U.S. Clean Energy Progress
When former-President Joe Biden was running for president, he pursued the most ambitious climate action platform of any major presidential candidate in U.S. history. Once in office, Biden launched the United States’ most far-reaching climate policy to date, the Inflation Reduction Act (IRA), in 2022, which set the country on a path to rapid clean energy expansion.
In its first two years of enactment, the IRA drove over $115 billion in clean energy investments and supported the creation of 90,000 jobs. The U.S. solar capacity increased from 27.4 gigawatts (GW) in 2023 to 39.9 GW in 2024, while battery storage capacity almost doubled. The combined wind, solar, and battery storage capacity in the United States increased from 261 GW in 2022 to 359 GW in 2024.
U.S. Falls Behind
When President Trump entered office for his second term, in January 2025, the course of U.S. energy took a turn. Trump referred to the IRA as a “green new scam” and vowed to halt the progress of the policy to, instead, focus efforts to expand the country’s fossil fuel production. This resulted in greater investor uncertainty in green energy projects, which has slowed progress in the U.S. clean energy capacity expansion.
In a recent article in Reuters, Ron Bousso highlights the risk with Trump’s approach to U.S. energy. Returning to a fossil-fuel centric strategy carries risks, such as an overreliance on finite energy sources – driving the need to invest in new oil and gas fields as old ones become depleted, and the risk of price volatility.
Trump’s focus on fossil fuel marks a break with the energy policy of previous administrations, which focused on market preference. Allowing markets to determine the winners and losers has allowed the U.S. to deliver lower costs and achieve faster innovation, which has helped the country to become a global energy superpower, according to Rousso. If Trump’s bet on fossil fuels does not pay off, this could all change.
China’s Clean Energy Exports Beating U.S. Fossil Fuel Exports
While the U.S. lags behind China in green energy, cleantech, and EV production, China is rapidly ramping up its exports, with no sign of slowing. Beijing’s exports of EVs, solar panels, batteries, and other carbon-cutting technology have been increasing for several years, to achieve a record $20 billion in export revenue in August 2025.
“China reached a record value in cleantech exports even as technology prices have fallen sharply,” explained Ember data analyst Euan Graham.
Meanwhile, the U.S. has focused on becoming a major fossil fuel exporter, selling $80 billion in oil and gas in the first seven months of 2025, compared to China’s cleantech exports of $120 billion over the same period.
As China continues to ramp up its green energy and cleantech production, renewable energy progress in the U.S. has slowed compared to recent years, allowing for Beijing to race ahead. While U.S. fossil fuel exports are expected to continue to rise, the lack of diversity in its energy mix could hinder long-term progress. In addition, if future U.S. political administrations return to a Biden-era energy policy, they will have to play catch up.
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