China dominates global energy markets, but its contradictions are piling up. A new report from C3 Solutions dismantles the myth of China as a green energy leader, revealing how the country’s aggressive push into renewables masks its continued reliance on coal. Meanwhile, the EU is ramping up pressure on Beijing to abandon new coal plants, as trade tensions and climate commitments collide. Today’s Grid Brief dives into China’s energy reality, the policies shaping its future, and what it all means for the U.S.

China’s Energy Illusion: C3 Solutions Report Exposes the Reality

A new report from C3 Solutions, China is No Green Energy Darling, lays bare the contradictions in China’s energy strategy. While Beijing positions itself as a climate leader, it remains the world’s largest consumer and producer of fossil fuels—especially coal. The report argues that U.S. policymakers need to recognize this reality and craft an energy strategy based on market-driven competition, not subsidies or wishful thinking.

Key Findings from the Report

China’s Clean Energy Push is Strategic, Not Environmental
The PRC is aggressively expanding its clean energy manufacturing—not to cut emissions, but to dominate global markets. China now controls 70% of the world’s rare earth processing and 60% of solar panel production.

Coal Remains China’s Energy Backbone
While China leads in solar and wind installations, it still burns more coal than the rest of the world combined. In 2024 alone, Beijing approved 66.7 GW of new coal-fired capacity—the equivalent of one new coal plant per week.

America Can Win—But Only if It Leans into Energy Abundance
The report argues that the U.S. can outcompete China by removing regulatory barriers, modernizing permitting, and expanding energy production across all sectors. A policy shift toward “energy abundance” would boost domestic manufacturing and counter China’s growing influence over global supply chains.

Implications for U.S. Energy Policy:
Trump’s “America First” energy strategy aligns closely with these findings. If his administration follows through on boosting domestic drilling, LNG exports, and critical mineral production, it could challenge China’s grip on global energy markets. But execution will be key—without aggressive reform, China’s state-backed industrial policy will continue to outmaneuver the U.S.

EU to China: Stop Building Coal Plants

The EU’s ambassador to China, Jorge Toledo, has publicly urged Beijing to halt its rapid expansion of coal-fired power. Speaking at an EU-hosted event in Beijing, Toledo criticized China’s massive coal approvals in late 2024, which accounted for 93% of new global coal plant construction. While China continues to lead in renewable energy installations, it remains the world’s largest coal consumer, with long-term power contracts that keep coal deeply embedded in its grid.

Despite growing European frustration, China sees coal as essential for economic growth and energy security. The EU is considering carbon tariffs on Chinese imports, a move that could further escalate trade tensions. But with Beijing committed to increasing coal production and maintaining energy self-sufficiency, international pressure is unlikely to alter its trajectory. For now, China’s energy strategy remains a paradox: the world’s biggest investor in clean power and its biggest polluter.

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Conversation Starters

• CNN – China Unveils Big Plan to Fix Its Ailing Economy and Transform Into a High-Tech Power
  Beijing is doubling down on AI, quantum tech, and industrial self-sufficiency in an effort to revive its sluggish economy and reduce reliance on U.S. technology.
  

• The Diplomat – Can China’s Power Sector Balance Decarbonization and Market Liberalization?
  New energy market reforms in China will expose renewables to market pricing, raising questions about whether the country’s clean energy boom can survive without government guarantees.
  

• Time – The World’s Biggest Polluter, China, Is Ramping Up Renewables
  China is pouring billions into offshore wind, solar, and battery storage—but its coal addiction continues to drive global emissions upward.

Good Bet, Bad Bet

Good Bet: NextEra Energy (NEE)
As China continues to dominate global solar and battery production, U.S.-based utilities like NextEra stand to benefit from a stronger push for domestic clean energy projects and grid expansion. The company is well-positioned to capitalize on rising renewable demand without overexposure to Chinese supply chains.

Bad Bet: JinkoSolar (JKS)
With Trump’s escalating tariffs on Chinese solar panels and energy equipment, companies like JinkoSolar face major headwinds. The U.S. market is shifting toward domestic suppliers, and rising trade tensions could further squeeze Chinese energy firms reliant on American buyers.

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