During the Cold War, the United States and the Soviet Union were engaged in a fierce competition to develop advanced military technologies, such as long-range missiles and satellites. Fast forward to today, and the battleground for global technological supremacy has shifted focus to artificial intelligence (AI) and next-generation energy.
In the realm of AI, the U.S. stands as a clear leader, widely surpassing other nations, although China is rapidly closing the gap.
Conversely, in energy production, the U.S. seems to have stumbled. This setback cannot be primarily attributed to technology or economics; rather, it stems from a complicated political landscape.
Since January 2024, President Donald Trump has enacted policies favoring coal and fossil fuel industries, making little effort to support renewable energy initiatives. Trump’s longstanding allegiance to the fossil fuel sector has culminated in significant appointments of former industry lobbyists to key governmental positions.
The Trump administration frames its energy policy as a matter of national security, claiming that prioritizing fossil fuels is essential while simultaneously cutting renewable energy support.
However, the actual situation reveals that the United States has been producing more oil, gas, and coal than it can consume since 2019, leading to a significant surplus for export. Currently, the country is one of the world’s leading fossil fuel exporters.
Essentially, the U.S. does not face an issue of energy security; instead, it grapples with rising energy costs and a worsening climate crisis. These problems are exacerbated by the administration’s commitment to fossil fuels.
In the past six months, Trump has radically dismantled years of progress in green industrial policy, retracting billions of dollars in tax credits and grants that had been accelerating American energy innovation.
Meanwhile, China continues to surge ahead in the renewable energy sector. By 2024, China has installed more wind and solar power capacity than the rest of the world combined. This boom is occurring while the U.S. effectively steps back from its position as a leader in clean energy technologies.
China’s dominance extends to batteries for electric vehicles, where about one-in-five lithium-ion batteries, vital for clean energy applications, are produced. Moreover, China is leading the development and patenting of the most advanced high-tech batteries.
While U.S. rhetoric emphasizes fossil fuel production, China is industriously building factories, monopolizing the market for crucial minerals like lithium and nickel, and securing export partnerships to bolster its energy sector.
As this competition intensifies, household energy expenses in the U.S. are projected to rise by an average of $170 annually through 2035. This increase is primarily a consequence of Trump’s One Big Beautiful Bill Act, which proposes sweeping changes to taxes and social security while eliminating support for affordable renewable energy options like solar and wind.
Trump’s administration is also setting up regulatory hurdles that could complicate large-scale clean energy developments. A recent directive mandated that even routine actions for wind and solar projects need approval from the Secretary of the Interior, exacerbating the situation further.
American communities are increasingly feeling the impact of climate change, with each year bringing harsher realities. The recent floods in Texas and wildfires in California and Hawaii illustrate the urgency of addressing climate issues.
The financial toll from natural disasters is expected to reach $183 billion in 2024. As these expenses mount, the continued promotion of fossil fuels will become increasingly unsustainable for American society.
While China benefits from its long-term planning, bolstered by a government less constrained by fossil fuel interests, it is poised to reap the financial rewards of its early investments in renewable energy.
Today, producing and operating renewable energy systems can often be cheaper than maintaining gas or coal power stations. For instance, a June 2025 report by Lazard revealed that new large-scale solar electricity generation could cost as low as $78 per megawatt-hour, while natural gas facilities could run as high as $107 per megawatt-hour.
Globally, utility companies are recognizing the advantages of clean energy, opting for lower costs that also reduce pollution. China, much earlier than others, recognized the shifts in energy trends and is now reaping substantial benefits.
Despite having the capability to innovate, American companies are facing challenges in the race to become a leading energy manufacturing powerhouse in the 21st century. The U.S., under Trump’s policies, seems to be stepping back from this competition.
Although the U.S. remains a player in energy innovation, it is increasingly clear that a pivot toward fossil fuels represents not only a departure from responsible energy strategy but also a potential path to stagnation in global energy leadership.
In President Trump’s vision, the U.S. may have transitioned away from one race only to fall behind in another. However, relying on the fossil fuel industry—a dated model financially, environmentally, and ethically—may lead to dire consequences.
image source from：theconversation
