In the early 20th century, America emerged as a dominant global power by leveraging its industrial strength to defeat fascism and establish a new architecture of international relations. Today, climate change poses a similar global threat, and countries like China are taking the lead in developing green technologies that offer an affordable path to decarbonization. China’s exports, increasingly focused on green technology, are booming, particularly in developing countries that are already grappling with the effects of climate change.
From an American neoliberal economic perspective, China’s state-led push towards green technology may seem illegitimate or unfair. However, China’s leaders prioritize long-term stability over short-term shareholder returns, drawing on their country’s history of dynasties that fell due to environmental disasters. With a centrally planned system that values constant struggle against climate change, China is actively positioning itself to transition towards a greener economy, led by individuals with backgrounds in science, technology, and environmental issues.
China received a stark reminder of the urgency of this transition in 2022, when a record heat wave dried up rivers, withered crops, and led to heatstroke deaths. This experience has reinforced the Chinese government’s understanding of the rational self-interest in making a green transition to avoid the fate of becoming a historical footnote like the Soviet Union. Cities like Shanghai, led by environmental experts, are investing in developing and bringing to market new technologies like rechargeable batteries, as well as creating corporate champions in renewable energy.
As China emerges as a global leader in green technology, the implications for American power and influence are significant. While the American approach traditionally leans on market forces rather than state intervention, China’s strategic focus on green technology could reshape the global economic landscape. As countries like Brazil, Pakistan, and Indonesia turn to China for solutions to their climate change challenges, the geopolitical implications of China’s green technology dominance could elevate its influence on the world stage. The competition for leadership in the global transition towards sustainability will likely be a defining factor in shaping the future of international relations and economic power dynamics.
