China is pulling ahead in the global renewable energy race, leaving the U.S. struggling to keep pace. From solar and wind to electric vehicles and battery production, China’s rapid expansion and massive investments are reshaping the clean energy landscape. While the U.S. makes progress, policy uncertainty and slower deployment put it at risk of falling even further behind. The numbers tell a clear story—China’s dominance is growing, and the gap is widening.
China’s renewable energy expansion is nothing short of staggering. By 2023, the country had installed a total renewable energy capacity of 1,322 gigawatts (GW), more than double that of the United States, which stood at 468 GW. In solar power alone, China added nearly 230 GW in 2023, which is more than the total installed solar capacity of the U.S. and Europe combined. The International Energy Agency (IEA) projects that China will account for nearly 60% of global renewable energy additions by 2030, with the country set to install more solar capacity in the next five years than the entire world did from 2001 to 2020. Wind energy is also a major focus, with China commissioning twice as much new capacity as the rest of the world combined.
Data source: Global Solar Power Tracker, Global Wind Power Tracker, Global Energy Monitor
By contrast, the U.S. is expanding its renewable sector but at a slower pace. While the Inflation Reduction Act (IRA) has boosted investment, the total clean energy investment in the U.S. stood at $303 billion in 2023, significantly lower than China’s $890 billion in the same year. The U.S. added 33 GW of solar and 12 GW of wind capacity, far behind China’s scale. The IEA projects that the U.S. will remain the second-largest contributor to renewable energy expansion but will continue to trail China in absolute numbers.
Political factors play a crucial role in shaping this dynamic. While China has taken a state-driven approach, using subsidies, state-owned enterprises, and long-term planning to dominate the supply chain for clean energy technologies, the U.S. has faced policy inconsistencies due to shifts in administration priorities. The Biden administration introduced incentives for clean energy investment. However, the second coming of the Trump adminsitration, with Trump’s infamous “drill, baby drill” comment regarding oil rigging days into his second term, has cast serious doubts over the the country’s clean energy infrastructure. The potential rollback of the IRA under a different administration could redirect over $80 billion in investments away from the U.S., weakening its competitive position. Additionally, ongoing trade restrictions, such as tariffs on Chinese solar panels and electric vehicles, could slow the U.S.’s transition by making clean energy solutions more expensive.
Looking forward, China is expected to increase its solar and wind energy capacity by another 800 GW by 2030, surpassing its own initial targets. This growth trajectory means China is on track to meet its 2060 carbon neutrality goal years ahead of schedule. Meanwhile, the U.S. is projected to see moderate growth in renewables, but grid limitations, regulatory barriers, and a divided political landscape may prevent it from scaling up at the pace necessary to close the gap with China.
The competition extends beyond just China and the U.S. The European Union is also struggling to keep up, facing high costs and dependence on imported technologies. Chinese companies now dominate 80% of the global solar supply chain, creating tensions with Western nations.
The EU and U.S. have both imposed tariffs on Chinese electric vehicles and solar products, attempting to slow Beijing’s dominance, but such measures may do little to disrupt China’s rapid growth. In 2023, it accounted for 60% of global EV sales, selling 8.1 million EVs compared to 1.4 million in the U.S. China also leads in battery production, supplying 75% of the world’s lithium-ion batteries and controlling key mineral supply chains.
Notwithstanding its history as a major polluter or reliance on coal, China is leading the global transition to renewable energy with unmatched scale and investment. In contrast, the U.S. lags due to policy uncertainty, lower investment levels, and slower deployment rates. Future projections indicate that China will continue to dominate renewable energy deployment and manufacturing, while the U.S. will remain a strong but distant second, with political decisions playing a decisive role in determining its long-term position in the clean energy race.
Its ironic to see USA lagging behind given its rich history in developing renewables technology. Its interesting to note that Solar water heating panels were installed on the White House during the Carter Administration in 1979. It was in the US that first commercial solar PV panels were sold in the 1950’s and the first wind farm cropped up in the 1980’s.