For over 50 years, global governments have sought alternative energy sources due to concerns about oil shortages and climate damage. China has emerged as a leader in clean-energy manufacturing investment, accounting for 85% in 2022. In response, the United States and Europe are striving to catch up by subsidizing domestic companies and impeding Chinese products. China's industrial dominance is attributed to extensive state support, including low-cost loans and land, leading to accusations of trade violations. President Biden and European leaders are adopting similar tactics to bolster their own manufacturing capacity. The West's shift towards industrial policy marks a departure from previous open market ideology. The US and its allies are now determined to avoid past mistakes and compete in the clean energy race, employing tariffs and subsidies to counter China's dominance. The focus is on coordinating protectionism and subsidies to present a united front against China's overcapacity.
