OPINION:
In a world of growing demand, having energy is power. The United States faces a dual threat meeting domestic demand and competing for global market share. China has been quietly reshaping the global energy landscape, exponentially building more on their soil, and outspending the U.S. nearly ten-to-one in overseas energy finance.
China added 475 gigawatts of new electricity generation in 2024. Meanwhile, the U.S. added just one-tenth of that. China built 74 gigawatts of new energy storage. The U.S. built 10. China built 54 gigawatts of new fossil fuel generation, primarily unmitigated coal. The U.S. built just two gigawatts of lower-emission gas.
By every metric, China is building more energy than we are. And that energy is fueling growth across their economy.
And make no mistake, as China further develops its own domestic capacity, it will sell even more of its products globally, furthering its global influence.
A first-of-its-kind analysis by ClearPath of U.S. and Chinese energy investments reveals staggering numbers: since 2015, China has poured $446 billion into global public energy projects compared to just $45 billion from the U.S. In Brazil, the Western Hemisphere’s second-largest economy, China has spent more than $60 billion, dwarfing America’s $472 million.
These gaps aren’t just about building and financing; they are going on offense globally. China has bought itself a stake in Brazil’s energy future, now owning at least 12 percent of the country’s power grid. China is setting standards, securing supply chains and using bully tactics on long-term partnerships that give it leverage over economies critical to U.S. security. Chinese state banks often tie loans to predatory conditions that push nations like Brazil away from other strategic partners, leaving them more dependent on China.
For the U.S., this is more than an economic opportunity lost. It is a giant geopolitical head start. Brazil is an emerging energy powerhouse and one of the fastest-growing markets. By ceding ground to China, we weaken our strategic position and limit U.S. business opportunities. The U.S. should not try to out-subsidize China, but true American energy dominance requires global market leadership.
The U.S. never will, nor should it, try to out-subsidize China to compete. But the U.S. must treat energy finance as a core pillar of national security, not an afterthought.
The good news: America has the tools to win, but only if we sharpen and use them. That starts with enhancing the scale and strategic focus of the U.S. International Development Finance Corporation (DFC), giving it the flexibility and a revolving fund to make long-term investments that reinforce American supply chains and strengthen our allies.
The Export-Import Bank (EXIM) also needs a stronger financing toolkit to reshore American manufacturing and supply chains. Raising its default rate cap would allow EXIM to back bigger, American-made projects, from advanced nuclear reactors to next-generation grid systems, that showcase U.S. leadership and reduce reliance on Chinese state-backed financing. Creating National Interests Accounts would ensure our investments serve clear strategic objectives.
Finally, the U.S. needs an Energy Security Compacts (ESC) framework: an interagency playbook that unites DFC, EXIM, the U.S. Trade and Development Agency, the Millennium Challenge Corporation and the Department of Energy. Through long-term agreements with clear, measurable outcomes targeting energy security and infrastructure, America can once again set the pace for global energy development. ESCs offer a bipartisan pathway to strengthen the Trump Administration’s work in countering China and Russia, while elevating energy security as a core pillar of U.S. foreign policy.
Our innovation and entrepreneurial spirit have long been foundational to American strength. Today, that dominance is being contested not on our soil but in markets abroad. If we fail to act, China will continue writing the rules of the global energy order. If we rise to the challenge, the U.S. can secure energy independence and global energy dominance, cementing our role as the partner of choice for nations like Brazil and beyond.
America has some of the strongest and most competitive companies in the world, but they are running into too many limitations to get products built domestically and reach new markets. We must get serious about competing with China by strengthening America’s capabilities to permit development domestically, and by promoting energy technology and expertise worldwide. Both building domestic supply chains on rising U.S. demand and a global order book support our economic growth and geopolitical leverage. This isn’t just about economics; it’s about national security and reducing global emissions through American innovation, rather than Chinese control.
• Jeremy Harrell is the CEO of ClearPath, a conservative energy organization whose mission is to accelerate American innovation to reduce global energy emissions.
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