As US-China tensions continue, one contrast stands out sharply between the big power rivals – their approach to energy and climate issues.

Even as the Trump administration cripples green energy endeavours with executive orders and the “Big Beautiful Bill”, China is building on its title as the world’s largest renewable energy investor. According to the State Grid Energy Research Institute, China is expected to bolster its national power grid by a record 500 gigawatts (GW) of renewable energy capacity this year.

The energy debate unfolds with the rapidly warming world needing more clean energy than ever, especially as advancing technology drives up demand.

Artificial intelligence (AI) and other innovative technologies need substantial amounts of electricity to operate, as they rely heavily on data centres and powerful computing infrastructure. Countries worldwide are trying to increase energy production as they invest in new data centres that must be kept running round the clock, with the US and China leading the field.

With technology rivalry a central driver of the broader US-China tensions, Beijing has forged ahead with renewable energy goals and boosted related investment in its pursuit of a global tech lead.

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China’s largest photothermal power facility drives development of new form of energy

China’s largest photothermal power facility drives development of new form of energy

In contrast, the Trump administration is cancelling tax credits for what it calls “unreliable ‘green’ energy sources like wind and solar” that “compromise America’s electric grid”.