A global contest is emerging between the world’s two largest economies over energy exports: the United States aims to sell fossil fuels, while China is pushing its clean energy technologies to international markets. So far, China appears to be ahead.
Exports of electric vehicles, solar panels, batteries, and other carbon-cutting technologies from China reached a record $20 billion in August, according to a report by think tank Ember. “China reached a record value in cleantech exports even as technology prices have fallen sharply,” said Euan Graham, a data analyst at Ember.
By comparison, the U.S. sold $80 billion in oil and gas exports through July, while China’s clean tech exports totaled $120 billion, continuing a trend of outpacing fossil fuel revenue in global markets. While the dollar figures understate the scale, the physical volume of solar panels shipped by China in August — 46,000 megawatts of power capacity — set a new record.
China is also rapidly expanding exports to emerging markets, with more than half of its electric vehicle shipments going outside the OECD this year. By contrast, U.S. fossil fuel exports, boosted under both President Donald Trump and President Joe Biden, remain concentrated in traditional energy markets. Trump has pledged to further loosen regulations to increase production and maintain the country’s lead in oil and gas exports.
Despite being a major importer of fossil fuels, China deploys much of its clean technology domestically. This quarter, the country is expected to sell more electric cars within its borders than all cars sold in the U.S., regardless of fuel type. Both nations, however, continue to leverage excess production capacity to generate billions in export revenue annually.
Industry experts note that China’s rising share in global clean tech could have long-term strategic implications. “Clean energy exports is hardware, which once a country has bought it, will generate electricity for a decade or two to come,” said Greg Jackson, CEO of Octopus Energy, the U.K.’s largest energy retailer. “Whereas with gas, the day you buy it, you use it, it’s gone forever.”
While U.S. fossil fuel exports may continue to grow and could eventually surpass revenue from Chinese low-carbon goods, China’s dominance in clean technology is expected to strengthen its influence in global energy markets for years to come.
