China or America: Who Will Capture a Larger Share of the Energy Export Market?

SadaNews - A fierce battle is underway between the two largest economies in the world for a share of the energy export market. The United States seeks to have the world buy its fossil fuels, while China wants to sell its clean energy technologies to the world. Currently, there is a clear winner: China.

China Excels in Exporting Clean Technologies

China's exports of electric vehicles, solar panels, batteries, and other technologies that contribute to reducing emissions have been increasing for years. Exports reached a record level in August, with a value of $20 billion in products shipped worldwide, according to a new report from the research center "Ember".

Ewan Graham, a data analyst at "Ember," stated that "China achieved a record in the value of clean technology exports, despite the sharp decline in technology prices".

The United States, which has established itself as a major exporter of fossil fuels, sold $80 billion worth of oil and gas abroad until the end of July, the latest month for which data is available. In comparison, China exported $120 billion worth of green technologies during the same period.

This marks the continuation of a longstanding trend. The United States recorded a record low for oil exports in 2024, according to the U.S. Energy Information Administration, however, China's exports of clean technology exceeded it by about $30 billion.

Volumes Increase Despite Falling Prices

However, the dollar figures do not tell the whole story. With the decline in solar panel prices, China is exporting larger quantities for every dollar of revenue. Although the revenues from solar panel exports in August did not reach the peak of March 2023, the production capacity that was shipped abroad, amounting to 46,000 megawatts, formed a new record.

More importantly, China's exports to emerging markets are growing rapidly. This year, over half of its electric vehicle exports came from outside the OECD, which includes wealthy nations.

Washington Bets on Fossil Fuels

The United States, under President Donald Trump during his first term and then under former President Joe Biden, pushed to increase oil and gas production. As a result, the country’s exports of fossil fuels increased significantly.

Trump is seeking to further raise production during his second term by loosening regulatory restrictions while simultaneously weakening the green technology sector.

It is worth noting that China is one of the largest importers of oil and gas and is so energy-hungry that it uses most of the clean technologies it produces.

During this quarter, China will sell more electric vehicles in its domestic market than the total number of vehicles sold in the United States, regardless of fuel type. Meanwhile, the United States can meet all its fossil fuel needs.

The Race for Revenue and Global Influence

Nevertheless, both countries have a surplus of production capacity in their respective strengths, allowing them to generate billions of dollars in export revenues annually.

The United States may be able to further boost fossil fuel exports to outpace revenues compared to China, which continues to export low-carbon goods at declining prices. However, China’s influence among other countries is likely to increase as its clean technology export volumes continue to grow.

Sharp Divide in Choices of Importing Countries

From the perspective of countries importing energy products or technologies from America or China, the divide could not be clearer, according to Greg Jackson, CEO of British "Octopus Energy", the largest energy distribution company in the UK.

He stated that "clean energy exports are devices and equipment, and once a country purchases them, they will generate electricity for the next decade or two. In contrast, gas, once bought and used, disappears forever".