Editor’s note: This Chatham House Rule was implemented for this event. Under it, participants — including reporters — were free to use the information received but weren’t allowed to identify any speakers.
At the Aspen Institute’s Energy Week on Monday, some of the world’s top energy minds pushed back on the Washington-centric narrative, challenging the idea that U.S.-China competition must come at the cost of essential clean energy cooperation.
Energy Week, an annual gathering in Aspen, draws experts, policymakers, and industry leaders worldwide to discuss critical issues in the global energy landscape.
As the two largest carbon emitters and economic powerhouses, the actions of the United States and China will significantly shape the global fight against climate change. Yet, as discussions at the event revealed, the path to meaningful cooperation is fraught with challenges and differing perspectives.
Monday morning’s session focused on the intricate dynamics of U.S.-China cooperation on clean energy — a relationship marked by both collaboration and rivalry. Attendees explored how these two superpowers could work together to advance global clean energy goals despite their ongoing geopolitical tensions.
Dominance and Implications
China’s dominance in clean energy was a significant topic of discussion. The country controls 80% of global solar photovoltaic manufacturing capacity and 85% of its battery production, making it an essential player in the worldwide transition to renewable energy. This dominance, achieved through state support, industrial policy, and private sector innovation, has positioned China at the forefront of clean energy technology.
This dominance, however, also raises concerns in the U.S.
Many attendees voiced worries about the potential risks associated with dependency on Chinese-made products, particularly in light of the geopolitical tensions between the two nations.
“China’s control over critical components of the clean energy supply chain gives it significant influence, which could pose risks to U.S. energy security and economic stability,” noted one participant.
Despite these concerns, several attendees emphasized the benefits of China’s advancements. The scale of China’s manufacturing capabilities has been crucial in driving down costs and making technologies like solar panels and electric vehicles more accessible worldwide.
“Without China’s production capacity, the global transition to clean energy would be slower and more expensive for everyone,” another attendee pointed out.
Concerns and opportunities
The discussion also focused on the U.S. perspective, particularly the need to balance competition with collaboration. The U.S. has long been a leader in technology innovation, with significant strengths in research and development through its national labs and private sector.
Recent legislation, such as the Inflation Reduction Act (IRA) and the CHIPS and Science Act, aims to bolster U.S. competitiveness in clean energy by supporting domestic manufacturing and innovation.
Attendees, however, clearly recognized that disengaging from China could be counterproductive.
“While the U.S. needs to enhance its capabilities, we must also be realistic about the interconnectedness of global supply chains. Isolationism in clean energy could slow our progress and lead to higher costs,” one expert cautioned.
Some attendees argued that the U.S. should focus on building a robust clean energy sector that can compete with China without closing the door to cooperation.
“We need to find a way to compete where it matters but also to collaborate where it benefits us all,” said one participant, reflecting a sentiment shared by many at the event.
Pushback on Washington
A notable aspect of the discussion was the pushback against the Washington-centric perspective that often dominates U.S. policy discussions. Several attendees, including international participants, emphasized the need for a more balanced approach that acknowledges China’s contributions and the mutual benefits of cooperation.
“We cannot frame this solely as a competition; there are areas where collaboration is not just beneficial but essential,” one attendee argued.
Others echoed this perspective, pointing out that the global nature of climate change requires a cooperative approach, even among rival nations.
“If we’re serious about tackling climate change, we must work together. The U.S. and China can’t do it alone,” another participant added.
This sentiment was critical among attendees advocating for Europe and emerging economies, who stressed the importance of involving other countries in the U.S.-China dynamic. The European Union, for instance, has been a strong advocate for global climate action and could serve as a mediator, helping to foster collaboration between the U.S. and China. Similarly, emerging economies in Asia, Africa, and Latin America are critical to the success of global clean energy initiatives. They could play a pivotal role in shaping the future of the U.S.-China relationship in this area.
A global perspective
The global implications of the U.S.-China dynamic were another key focus of the discussions. Attendees highlighted the importance of involving other countries, particularly those with strategic resources essential for clean energy. Latin America, especially Chile, was noted for its significant reserves of lithium and copper — two critical materials for producing batteries, electric vehicles, and renewable energy infrastructure. With some of the world’s largest reserves of these essential resources, Chile plays a pivotal role in the global clean energy supply chain.
The European Union, with its strong climate policies and commitment to international cooperation, was also seen as a potential bridge between the U.S. and China. Attendees emphasized that the U.S. and China must engage with nations like Chile, offering support and technology transfer to ensure a just and equitable energy transition.
The discussions, however, also underscored the challenges of managing a complex, multipolar world where different countries have varying interests and capabilities.
“We’re dealing with a global issue that requires a global solution, but the reality is that not all countries are on the same page when it comes to climate action,” one attendee observed.
What’s ahead?
Despite the optimism expressed about the potential for U.S.-China cooperation, attendees did not shy away from acknowledging the significant challenges that remain. The current geopolitical climate, characterized by trade disputes, military posturing, and human rights concerns, complicates efforts to collaborate on clean energy.
One expert remarked, “The broader U.S.-China relationship is fraught with issues that could derail even the most well-intentioned climate initiatives.”
This risk further underscores the importance of the pushback against a purely competitive narrative that emerged during the discussions. Some attendees advocated for a more nuanced approach, suggesting that while competition is inevitable, it should be balanced with strategic cooperation.
“We can’t let rivalry overshadow the bigger picture. The stakes are too high,” one participant concluded.
The discussions at Energy Week highlighted the complexities of the U.S.-China relationship in the context of clean energy. While there are significant challenges, there is also considerable potential for cooperation. As the world’s attention remains fixed on how these two superpowers will navigate their differences, the outcomes will have far-reaching implications for the future of global energy and climate action.
