The article With Hormuz Closed, China Is Wiring the Globe’s Clean Energy Future by David M. Hart analyzes how the closure of the Strait of Hormuz is accelerating the China clean energy global leadership transition.
It argues that, regardless of the conflict’s outcome, China is positioned to benefit strategically due to its dominance in renewable energy, batteries, and electrical infrastructure.
Energy crisis and acceleration of transition
The closure of Hormuz has disrupted global oil and liquefied natural gas supplies, forcing many countries to rethink their energy strategies. As a result, governments are accelerating investments in solar, wind, batteries, and electric vehicles.
For example, countries highly dependent on Middle Eastern energy imports have already declared emergencies and fast-tracked renewable projects. Consequently, the crisis is not only a short-term disruption but also a catalyst for long-term structural change in global energy systems.
China clean energy global leadership advantage
China’s advantage in this transition is significant. The country dominates key sectors such as solar panels, lithium-ion batteries, and electric vehicles, which are described as the “new trio.”
In addition, China controls a large share of critical inputs, including rare earth elements and refined minerals, and leads in manufacturing capacity for energy technologies. This extends beyond production to infrastructure, as Chinese firms supply power grids, transmission systems, and increasingly the software that manages them.
Moreover, China is investing heavily in research and development, including large-scale demonstration projects and emerging technologies such as green hydrogen. This strengthens its position in future energy innovation.
Global implications and U.S. challenges
The rise of China clean energy global leadership has mixed implications. On one hand, the expansion of renewable energy could reduce global emissions over time. On the other hand, increased electricity demand may temporarily raise reliance on coal, especially in China.
At the same time, the United States faces strategic challenges. Although it is a major LNG exporter, its current policy approach—combined with reduced support for clean energy innovation—may weaken its long-term competitiveness.
The article suggests that global competition could increasingly be defined by a contrast between an “electrostate” led by China and a “petrostate” model associated with the United States.
Reference
Hart, D. M. (2026). With Hormuz closed, China is wiring the globe’s clean energy future. Council on Foreign Relations. https://www.cfr.org/articles/with-hormuz-closed-china-is-wiring-the-globes-clean-energy-future