ABSTRACT

This research paper highlights that solar energy comprehansive combating the climate crisis and become part of global power struggle. It specifically investigates the one between the United States and China. While the US support local production with the Inflation Reduction Act (IRA), China is increasing its global influence with solar energy investments support by the Belt and Road Initiative (BRI). Trade restrictions, patent lawsuits, and government backed programs show that solar energy is now used as a tool for political and economic power. The study also supports and examines the subjects with cases. The study argues that solar energy moved from being a symbol of global cooperation to an area of strategic competition. It also highlights the risk that this competition could slow down the global fight against climate change.

Keywords

Solar Energy, US - China Competition, Energy Policy, Green Technology, Geopolitical Power, Trade Restrictions, IRA, BRI

INTRODUCTION

Solar energy is also seen as a new global geopolitical competition. While solar energy is essential to combating climate change, the increasing competition between the United States and China plays important role. It also shows that green technologies are becoming tools of global influence.

This competition is about gaining economic power is leading in technology, gaining access to critical raw materials, and gaining control over global energy supply chains. That’s why there is trade competition and policies between the US and China. In order to reduce its dependence on Chinese solar products, the US has launched major support programs such as the Inflation Reduction Act (IRA) to increase local production. In return, China is increasing its political and economic influence in developing countries with solar energy investments as part of the Belt and Road Initiative (BRI). China has important effect especially in Asia, Africa, and Europe.

This study shows that the race for solar panel production is regulating technology and global politics. Patent disputes, trade restrictions, and government-backed investments have transformed solar into an area where national interests often take priority over shared climate goals. The energy transition is currently very conflicted because the US imposes tariffs on Chinese solar panels and China imposes restrictions on American technology companies.

The study uses case examples and a broad perspective. We will se how solar energy has shifted from a symbol of global cooperation to a tool of political power. In some ways, it is even beginning to replace traditional energy conflicts such as oil wars. The distrust between the U.S. and China makes it more difficult to work together on renewable energy and adds new challenges to global energy diplomacy.

The study aims to examine the economic, technological, and political aspects of this competition, demonstrating both the potential for renewable energy to get countries together and the risk of pushing them stay away. Whether solar energy will become a shared climate goal or a weapon of rivalry is also debatable. Undertanding solar energy’s dual role like a climate solution and geopolitical tool is crucial to understanding today’s complex energy politics.

The Solar Energy Rivalry Between The U.S. And China: A New Front In The Global Power Struggle

The world is rapidly transit from fossil fuelbased energy systems to replacement sources. In this process, replacement energies are highlighted by low temperatures, sustainable growth and technological innovations. Because of these conditions the separation of states have great demand for energies. Solar energy has become a new arena of geopolitical and economic competition, notedly between global powers such as the US and China. The competition in solar energy supports energy policy, technological progress, industrial planning and long-term global impact.

China’s Dominance In Solar Energy

China’s installed solar capacity is almost four times that of the US and it also has significant capacity worldwide. Major Chinese companies like LONGi Green Energy, JA Solar, and Trina Solar have important share of the global market. This dominance is largely because of government subsidies, low cost production models, and the Chinese government’s long-term industrial planning. China’s geographical and technological capabilities play major role in the development of the solar sector.

In addition to its domestic leadership, China is also exerting its influence abroad through the Belt and Road Initiative(BRI) and directing solar energy investments to Asia, Africa, and Latin America. These efforts are about economic growth, serve to expand China’s geopolitical reach through technology exports and infrastructure development. In addition, China’s energy investments in different geographies make other countries dependent on China.

Chart 1; Installed Solar Power Capacities of the US and China. references by Reuters (China's solar, wind power installations soared to record in 2024) and SEIA (Solar Market Insight Report 2024 Year in Review)

 The U.S. Push To Regain Ground

Although the US played a leading role in the early development of solar technology, it has lagged behind China especially in production. This began in the 2000s, when China’s aggressive pricing strategies drove many U.S. manufacturers out of the market. The U.S. responded by imposing protective trade measures with anti-dumping duties in 2012 and 30% tariff on imported solar panels under Trump administration in 2018. The U.S. anti-dumping duty rate against Asian countries in 2025 ranges from 21.31 percent to 271.2 percent.

Under President Biden, the U.S has turned to revive domestic manufacturing, rebuild supply chains and accelerate the transition to clean energy. The 2022 Inflation Reduction Act represent a major milestone in this effort, offering significant tax credits and incentives to local solar manufacturers. These measures have strengthened reindustrialization and energy independence. Yet it is still not at a level which can compete with China.

Race For Technology And Critical Materials

Competition in solar is not just limited to manufacturing capacity it is also getting technological leadership. New technologies such as perovskite solar cells with high efficiency and low manufacturing costs are critical to the solar revolution. Investing in these technologies is crucial for governments. Both the US and China are investing heavily in R&D to gain a competitive advantage in this area. Future dominance will depend on existing capacity. This process has been developed with innovation and access to advanced technologies. R&D is necessary to effectively use existing capacity and increase capacity.

China also has a strong advantage in the supply and processing of key materials as polysilicon, silver, and rare earths. US is trying to reduce its dependence on China by forming partnerships with allies. This strategy is called “friendshoring,” and reliable partners create resilient and secure supply chains. And it becomes clear how important having the earth elements and the supply of key materials are for independence and reliable collaboration.

How Patent Wars Shape Competition

In the past decade, patent wars have begun with the emergence of solar energy systems. Patent wars directly shape global technological competition. In trade and technology conflicts betwen the US and China, patent disputes are strategic weapons. These conflicts help companies for protect their R&D investments and can be used to prevent competitors from entering the market.

The US has accused Chinese companies of copying innovative American solar technologies. They are new-generation systems: perovskite solar cells, through patent infringement etc. As a result, the US has filed lawsuits and initiated investigations through international trade bodies. These disputes go beyond corporate interests and the two countries are competing with each other over state backed industrial strategies. China argues that its companies are developing similar technologies through their own R&D and emphasizing their contributions to innovation.

In this context, patent wars can slow down technology transfer, disrupt supply chains, and increase product costs. This undermines the global transition to renewable energy. But also they can force countries to invest more in local production and technological self reliance. US restrictions on Chinese patents and technologies have actually acelerated China’s efforts to increase its independent manufacturing capacity.

 Case Study: U.S. vs. China In Solar Technology – “Stolen Technology Or Innovation Race? The Perovskite Solar Cell Dispute”

Perovskite solar cells are new generation of technology that has the potential to revolutionize solar energy. Offering high efficiency at low cost, this technology has become a strategically valuable product in the global market. Companies are in fierce competition to acquire this technology. American companies have accused Chinese companies of copying technology and violating patents, leading to a series of lawsuits and investigations against companies like Runergy. These actions are motivated by commercial interests, concerns about national security and technological dominant.

However, China claims that its progress in this area is the result of local R&D and statebacked investments. Chinese companies have significantly increased their global patent applications and have become strong competitors in the international market. According to this development, technological leadership is not only exclusive to the West.

This case provides an example of how patent wars can affect global technology dynamics. To sum up this competition is taking place in courtrooms, global energy policy and economic strategies.

How Solar Projects In China’s Belt And Road Initiative Are Helping To Build Political Influence In Africa And Asia?

China’s Belt and Road Initiative (BRI) solar energy projects in Africa and Asia aim meet energy needs. At the same time, they are strategicaly deepening China’s political and economic influence in these regions. Especially in developing countries, renewable energy projects strengthen China’s position in the global energy landscape while helping modernize local infrastructure. With these projects China creates economic dependency and it increases its political influence in partner countries. In this way it protect its geopolitical interests.

In Asia, the 1,000 MW Quaid e Azam Solar Park in Pakistan and the Teknaf Solar Park projects in Bangladesh were developed by Chinese companies. In Africa, Chinese companies have provided financing, technology, and construction support for the Benban Solar Park in Egypt and the Bangweulu Solar Park in Zambia. Additionally, rural solar energy solutions supported by China have a regional presence in Kenya, Nigeria and Ethiopia. These efforts highlight China’s shift from traditional fossil fuel investments to solar energy within the framework of the BRI.

Looking at the financing model, most of these projects are financed by Chinese state banks and implemented by Chinese companies. This increases the debt burden of the recipient countries to China and allows China to gain stronger political influence in these regions. China's influence in Africa and Asia is a strategic show of force, especially in the increasing global competition between China and the US in the fields of technology and economy. Investing in solar energy, an environmentally friendly and positively perceived sector, has become an important part of China's soft power strategy. China has a say in the states that are depend on it in the energy sector with this soft power.

Case Study: Expanding Political Influence; "Debt Diplomacy In The Desert: How China’s Solar Investment Binds Egypt"

This study in Egypt shows how China uses solar energy investments to gain political influence. China has made significant investments in the 37 square kilometer Benban Solar Park in Aswan. The project has increased Egypt’s electricity production with a total installed capacity of 1.65 GW and increased energy security by reducing its dependence on energy imports. At the same time, China has gained strategic, economic and diplomatic power thanks of its participation in the project.

The financial investment in the Benban project is approximately $2 billion. A large portion of this financing came from Chinese state banks, for instance the China Development Bank. China Electric Power Equipment and Technology Corporations have been actively involved in construction and engineering.

This has increased Egypt’s economic dependence on China and expanded China’s geopolitical influence in the Middle East. Some analysts say that Egypt’s support for China at the United Nations stems from these economic ties. The Benban project is not only an economic development for China's solar energy. It also an important part of its long term foreign policy and soft power strategy.

How Is The US Trying To Offset China’s Global Influence By Investing In Green Energy Through The Inflation Reduction Act?

The US began investing heavily in green energy with the Inflation Reduction Act because it want to secure its own energy independence and China’s growing connection to the global green energy market. This act aims to reduce carbon emissions in the country. And its another goal is provide financial incentives for American clean energy to reduce the efficiency of Chinese-based production. In parts such as solar panel production, “Made in America” is becoming more wide spread to support domestic production and reduce its varieties.

The US is developing its own alternative investment strategies in response to China’s Belt and Road Initiative which has helped build energy in many developing countries. The tax breaks, subsidies and direct support provided by the IRA are making US-based companies irreplaceable again. The US’s aim is to combat China’s struggle in global energy production and for Western countries to play a greater role in this transformation.

Case Study: "Made In America: How The IRA Revived A Dying Solar Company"

An American solar company (First Solar), which was struggling to compete with China’s low competition panels and was close to bankruptcy, is being re-established thanks to the Inflation Reduction System (IRA) . Thanks to the tax incentives and subsidies provided by the IRA, the company now able to make new investments that in turn increases local production. Lastly the company itself freed from financial voids. In addition, the company diversifies its supply chain by sourcing from outside China and reduces storage for Chinese imports. This transformation goes beyond the recovery of a single company. The American solar industry which has been held back for many years by China’s regimes and major change production, symbolizes a revival. In this example, we see the effects of the IRA as both economic and geopolitical. The US is offering more attractive and reliable partner for countries that can replicate their own brands in the solar energy sector and develop themselves. Many of these countries have already aligned themselves with China through initiatives such as the Belt and Road Initiative, which focuses on energy products. The US position itself as an alternative source of technology and investment for its own countries. Therefore, some countries may see the US as a more reliable partner and source of investment in the future.

In this way, the IRA has an important role in reshaping global power dynamics. The IRA redefines the US’s global powers and ensures that it assumes a leading role in global energy use. This green strategy can provide a more diverse range of options for recovery in the energy revolution, emerging against China’s increasing dominance and developing sustainable growth. The global balance of power shows that the potential to shift from China to the US but despite the IRA, China continues to develop and maintain its activities.

Are Tariffs And Trade Restrictions Slowing Global Solar Adoption?

Tariffs and trade restrictions are among the key factors slowing down the global spread of solar energy. the US and Europe markets have implemented various trade measures in response to China’s pricing policies in solar panel production. These measures include high tariffs on Chinese manufacturers, anti-dumping, technology licensing disputes, and import bans. in particular The US has increased such measures, saying that cheap solar panels from China harm local manufacturers and create unfair competition.

The trade competition between the US and China directly affects the solar sector. China is the global leader in solar panel production, dominating the market with its competitive pricing and control. The US try to increase local production while reducing its dependence on China with restrictive policies. China’s dominant role in the global energy transition has forced the US to adopt protectionist policies to strengthen its own solar industry.

While these policies aim to protect local manufacturers, they also increase solar panel prices and make it harder to implement renewable energy projects. Higher project costs can delay countries’ ability to meet climate goals and reduce their demand. The US and Europe are facing higher costs in the short term by focusing on local production instead of importing cheaper Chinese products. Therefore these measures can provide many advantages and benefits in long term. However, if these policies are lost control, they can disrupt the global supply chain, slow down technological progress, and create imbalances in supply and demand.

For example restrictions on Chinese made cells and panels can halt or delay projects rather than reduce dependence on them. However, in the long term, these restrictions can strengthen local production and increase industry diversity. Both the US and China are key countries in global renewable energy and aim to secure their energy futures. So these policies are part of a strategic competition to reshape global energy and environmental policies.

Case Study: "Europe’s Solar Dilemma: Climate Goals vs. Protecting Jobs"

The dilemma faced by the European Union is a logical example. On the one hand the EU sets climate targets for 2030 and 2050, while on the other hand, domestic options propose import quotas and tax restrictions to protect against low resistance Chinese panels. This has led to a slowdown in solar panel installations in many European countries and increased costs. The regulatory policies it implemented may make it difficult for the European Union to reach out because if sufficient investments and incentives are not provided, companies cannot fight back.

While it has sustained short-term employment, it has harmed the environment rather than undermined the climate resilience of these countries particularly in Germany and France. A significant amount of investment has been suspended due to the high cost of materials. Furthermore, solar panels produced in Europe are still competing with Chinese products in terms of quality and capacity and then it create to groups in the supply. This is an example of how global trade policies can conflict with environmental policies and the dilemma of investing countries between "green growth" and "economic protectionism".

“Is US-China Competition Turning Renewable Energy (Especially In Solar Energy) Into A ‘Power Tool’?”

The competition between the US and China is turning renewable energy into a "power tool". It is no longer just fossil fuels; solar panels, battery technologies and green energy infrastructure have become geopolitical weapons. In the past, "Oil Wars" shaped countries' foreign policies, economic wars and military strategies. Today, green technology affects foreign policies of states. Just as oil embargos were used to control countries during the Cold War, today there is a new "energy arms race" created by renewable energy technologies.

The US is trying to break China's global dominance, especially in solar technologies, through patent wars, import bans, license restrictions and interventions in critical raw material supply chains. In return, China is trying to maintain its power and hegemony in the solar energy sector through economies of scale, subsidies and foreign investments.

As some sources describe, this process is called “technology wars” (Anadolu Agency, Eko Politika) or “new hegemonic struggles” (Gelenek, DergiPark). The sanctions imposed by the US and China’s countermeasures create dilemma in their commercial and strategic security. These developments and transformations show that energy technologies have the potential to shape global power dynamcs and that countries are creating strategies for this new “energy arms race”.

Case Study: "From Oil Embargoes to Solar Tech Bans: A New Era of Energy Weaponization"

This case study shows how renewable energy vehicles have become a “weapon” from the 1973 oil crisis to the present. In old times oil was used as a tool for political pressure and power; today, solar energy technologies play a similar role. For example, the US has imposed tariffs of approximately 25% on Chinese solar products and restricted technology transfer. But China controls about 70% of global rare earth production and more than 80% of global solar panel manufacturing capacity. It is giving China important leverage in supply chains.

This mutual “green energy arms race” presents both investors and states with a difficult choice. The dilemma now lies between meeting climate goals and gaining geopolitical strategic power. According to the International Energy Agency, if global renewable energy investment increase three times until 2030, net zero emissions could be achieved in 2050. However, tensions between major powers make international cooperation difficult and states often prioritize their own interests over climate goals. This prevents every state from accessing global renewable energy investments and creates conflicts over solar energy. In the era of renewable energy, the source of “power” is not just energy production it is also important to control the technology and materials behind it.

“Is Solar Replacing Oil Wars?”

In the past, energy wars were mainly about controling oil and gas. However in the 21st century, this competition shifted to renewable energy technologies. Today, it has accelerated most towards solar energy. This change is going green and gaining strategic and economic power in the global energy race.

In 2023-2024, China controls approximately 80% of the global solar panel manufacturing industry. China is the leader in producing polysilicon, solar cells, wafers and modules. The most important base material for solar panels is polysilicon and more than 75% of the world's polysilicon production is produced in China. This could make China an energy hegemon such as Saudi Arabia was a oil hegemon for long time.

The US is trying to reduce its dependence on China and has introduced large subsidies through the Inflation Reduction Act of 2022 to increase domestic solar energy production. Additionally, the US has filed patent infringement lawsuits against Chinese companies Runergy and Adani to maintain its technological superiority and limit China’s influence in the market (Alibaba reads 2024).

While past military operations to control oil pipelines or shipping routes have been waged, today’s energy wars have also been fought with trade restrictions, export bans, and legal actions. For example, the technology restrictions imposed by the US on China are part of this new energy and technology competition (Businessweek Turkey, 2024). In the renewable energy era, oil wars may be replaced by renewable energy technologies and resources as the “tools of power”. At this point, states may create commercial, diplomatic, and physical conflicts to increase their solar energy production and control raw material resources. Just as the desire to dominate oil resources, primarily by the UK and the US for over 100 years, is now turning into a conflict to dominate productive solar energy regions and technologies.

Case Study: "Chokepoints Of The 21st Century: How Solar Supply Chains Mirror Oil Routes"

This case study shows how today’s solar supply chains remind the oil chokepoints of the 20th century. In the past, chokepoints such as the Strait of Hormuz and the Suez Canal were critical to global oil flows and control. Today, solar power supply centers in China are fulfilling a similar role.

China’s Xinjiang region alone produces about 45% of the world’s polysilicon production, making it a critical “chokepoint” in the solar supply chain. The US and EU are fighting hard to diversify their solar supply chains and reduce their dependence on China.

Over time, solar manufacturing facilities, rare earth mines, and wafer factories are becoming as strategically important as oil pipelines. The US is now promoting “friendly sourcing” moving production to trusted countries like India and Vietnam. For example, with US support, India aims to reach a production capacity of 20 GW of solar panels per year by 2024. The US’s effort here is to control solar energy production as it did with oil in the past. In other words, just as oil once shaped global power structures, today solar technology and control of supply have become tools of geopolitical influence.

CONCLUSION

The competition between the US and China for solar energy is not limited to the environmental goals of green transformation. It has become a high stakes geopolitical and economic struggle. As both countries compete for a say in the energy systems of the future, solar energy has become a tool for both economic development and strategic power. China’s long-term geopolitical goals in this area include its production capacity, dominance of critical raw materials, and investments through the Belt and Road Initiative. In contrast, the US is trying to revitalize domestic industry, protect patent rights, and regain its leadership position in global energy investments with the IRA policies. While these policies seem positive for the US’s future, they also carry global risks. These risks generally limit solar energy trade and make it harder to achieve climate goals.

The effects of this competition are far reaching. Patent wars and trade restrictions are disrupting supply chains and slowing down the global expansion of solar energy. The cost of this competition is the disruption of international cooperation needed to combat both the economic and climate crises.

Solar energy is now starting to take over the role played by oil. has become a “power tool” that generates geopolitical influence. Solar projects are political and strategic tools, along with environmental investments and climate goals. Ultimately, as renewable energy countries strive for the potential to cooperate around a shared sustainability goal, the US-China rivalry could undermine this process. Managing this competition and creating a global commons for solar energy without deviating from climate goals is the biggest challenge the global community currently faces. This can only be achieved through cooperation, transparency and balanced energy policies.

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