With China doubling down on renewables, US risks losing economic ground

Off the northern California coast near Eureka, a major offshore wind project meant to power more than two million homes is now in limbo. The marine terminal in Humboldt Bay—intended to assemble the massive turbines—was expected to be “shovel-ready as soon as 2026,” according to Chris Mikkelsen, executive director of the Humboldt Bay Harbor District. 

“That’s no longer realistic,” he says, speaking to NPR, after the Trump administration canceled more than $426 million in federal grants. “Now we’ve been on pause since we got the news in August, we’ve been pencils down… It very much contributed to the delay.”

NPR notes that the Trump administration has systematically reversed federal support for renewable energy, describing green power as unreliable and financially risky. In contrast, China—America’s top economic competitor—has accelerated its investment.

Li Shuo of the Asia Society’s China Climate Hub observes: “It couldn’t be a stronger contrast between the two countries.”

According to the nonprofit Global Energy Monitor, China accounts for 74% of all large-scale solar and wind projects currently under construction; the US accounts for just 5.9%.

China’s decades-long strategy to dominate renewable technology is now fueling its economic growth. More than a quarter of China’s 2024 economic expansion came from wind, solar, and battery technologies. Renewable energy is also helping China reduce pollution without sacrificing growth.

As Qin Haiyan of the World Wind Energy Association states, “Developing the economy and reducing carbon emissions to address climate change are no longer contradictory.”

The US, meanwhile, is pulling back. Renewable investment in the first half of 2025 fell by 36%. Federal tax credits for wind and solar—extended under the 2022 Biden climate law—are being ended years early under a new GOP spending package. The administration also canceled more than $13 billion for green energy projects and attempted to halt projects already being built.

White House spokesperson Taylor Rogers defended the shift: “Rolling back the unpopular Green Energy Scam and unleashing energy sources like natural gas, nuclear, and beautiful, clean coal are commonsense policies…”

Experts interviewed by NPR say the effects could be profound. Princeton University engineer Jesse Jenkins warns that ending federal incentives will result in the US installing far less wind and solar through 2035, “more than the entire contribution of all of our nuclear plants or coal plants.” Jeremy Wallace of Johns Hopkins University argues the USrisks sidelining itself in the global climate effort: “What America does… is a cute side character.”

China’s emissions have been flat or falling for 18 months, driven by record levels of cheap solar and wind power. Its renewable exports—including EVs, turbines, and batteries—are also helping other countries decarbonize. As analyst Lauri Myllyvirta explains, China’s coal plants increasingly operate only as backup.

For NPR’s sources, the conclusion is clear: China has become central to global climate progress.

“I would argue the Chinese renewable energy story is probably the most important storyline to watch for the global climate agenda,” Li says. “You’ll probably see China as the best hope for global climate progress over the coming years.”

By Sabina Mammadli