Trump's new bill risks boosting China's clean energy edge

In the United States, a significant legislation known as the One Big, Beautiful Bill was signed into law by President Donald Trump, transforming the nation’s energy policy landscape. This act mainly focuses on substantial reductions to clean energy tax credits and extends benefits for fossil fuels, such as coal. Experts have raised concerns that the act may lead to an ‘overcorrection’ that could hinder the U.S.'s competitive edge against China, a country that has been rapidly advancing its renewable energy sector. While the U.S. initially held a leading position in clean energy, European countries have overtaken it, with China actively increasing its influence through low-carbon policies and governmental incentives. Moreover, the act imposes tighter restrictions on foreign entities, specifically limiting tax credits for projects utilizing Chinese inputs. Although intended to reduce dependence on China, the complexity of these new provisions has led to uncertainty regarding its implementation, which may deter clean energy production and innovation in the U.S. This situation highlights the delicate balance between fostering domestic energy growth and remaining competitive in a global market where China is poised to dominate. Policymakers have been urged to ensure that America continues to invest in a diversified energy future while leveraging current strengths in oil, gas, nuclear, and renewables to maintain its geopolitical status.