President Trump has an unconcealed hunger for natural resources from abroad and the power they could grant him. He declared that the United States intervened in Venezuela to “take the oil,” betting that investors would put up at least $100 billion to revive a decrepit industry. His gamble is that countries will still want to buy oil from America to power their cars, trucks, ships and planes for decades to come.
Though China is the world’s largest oil importer, its leader, Xi Jinping, is less brash about coveting foreign resources. The country’s leadership is pushing intensively at substituting electricity for oil.
Chinese technology companies are paving the way for a world that will be powered by electric motors rather than gas-guzzling engines. It is a decisively 21st-century approach not just to solve its own energy problems, but also to sell batteries and other electric products to everyone else. Canada is its newest buyer of EVs; in a rebuke of Mr. Trump, its prime minister, Mark Carney, lowered tariffs on the cars as part of a new trade deal.
Though Americans have been slow to embrace electric vehicles, Chinese households have learned to love them. In 2025, 54 percent of new cars sold in China were either battery-powered or plug-in hybrids. That is a big reason that the country’s oil consumption is on track to peak in 2027, according to forecasts from the International Energy Agency. And Chinese E.V makers are setting records — whether it’s BYD’s sales (besting Tesla by battery-powered vehicles sold for the first time last year) or Xiaomi’s speed (its cars are setting records at major racetracks like Nürburgring in Germany).
These vehicles are powered not by oil but by domestically generated electrical power that comes from coal, nuclear, hydropower, solar and wind.
In 2000, China produced only one-third of the amount of electrical power that the United States did; by 2024, it produced nearly two and a half times U.S. levels. China’s surging energy investments went substantially into building new plants for burning coal, which the country possesses in abundance. But over the past decade, it has also moved fast on building cleaner energy sources, especially wind and solar.
China now generates more electricity each year than the United States and the European Union combined. It has close to 40 new nuclear power reactors under construction, compared with zero in America. Last year, Beijing announced work on a new hydropower dam in Tibet that will have triple the capacity of China’s Three Gorges Dam, currently the world’s largest power station.
China isn’t just building gigantic amounts of power; its businesses are reshaping technological foundations to electrify the world.
China spent decades trying to build world-leading automotive champions; the results were not impressive until E.V.s arrived. Their adoption allowed Chinese automakers to stop trying to beat the Germans at building better combustion engines and leverage their greater expertise in electronics instead. If an E.V. is a smartphone with tires, then it makes sense that the country that makes most of the world’s electronics would also make nearly half of its cars.
Several technologies had to mature before they could be electrified. The lithium-ion battery was invented by American and Japanese scientists before Chinese companies took over most of this industry in the 2010s. The United States also used to dominate the production of rare-earth magnets, the crucial product in electric motors; China makes more than 90 percent of these magnets today. In addition to batteries and magnets, the writer Noah Smith identifies power electronics and embedded chips as the main drivers of the new electric age.
The oil-burning products that can now instead be powered by batteries and electric motors include not only cars, but also bikes, buses and even some boats. Heavy industry and temperature control for buildings are being electrified, too. And a future in which many noisy, gas-powered household tools can be electrically powered is in reach: Even the foul and loud lawn mower and leaf blower are gradually being replaced by a more gentle thrum.
Some products may never be electrified. Battery packs will probably not power a long-haul flight or container ship (though cleaner fuels are possible). But the opportunity to electrify almost everything else will grow over the next decade, and China is leading the charge.
The southern city of Shenzhen, which has been producing Apple products for two decades now, is leveraging its expertise in electronics — as well as more advanced batteries, magnets and chips — to remake whole categories of transportation and household and industrial products into the image of the smartphone. As the world moves on from combustion engines and into batteries, it will be looking away from oil producers and toward factories in Shenzhen.
The United States is far behind this competition. On the one hand, Elon Musk has done more than anyone else to raise the status of electric vehicles and create their associated technological improvements. But the broader U.S. industrial base has mostly shed its capabilities in batteries and rare-earth magnets, in part out of a deliberate effort to move these factories to China. American companies building drones or other products of the new electric age are also far behind their Chinese competitors.
Electrification demands engagement with the messy world of building power plants and manufacturing at scale, which are China’s strengths. But Silicon Valley has instead preferred to work in the realm of highly profitable digital businesses. Technologists like Sam D’Amico (who is making a high-powered electric-induction stove) and Ryan McEntush (a venture capital investor) have lately sounded the alarm at how comprehensively ahead Chinese capabilities have become.
The United States could compete on building better drones and electric vehicles if its businesses had greater access to electrical power and a vital industrial base. But it is governed by a president who is enthusiastic about powering the future with fossil fuels and has a personal pique against wind turbines, calling them the “SCAM OF THE CENTURY!” His administration is slow-walking approval of and canceling new solar and wind projects while favoring coal and gas — which makes it more difficult to electrify. No product is more important than batteries in electrification, yet an infamous ICE raid targeted a Korean company that was constructing a battery factory in Georgia. Meanwhile, Mr. Trump’s tariffs have hamstrung American manufacturing, which has lost around 70,000 jobs since April.
America had better shape up before losing out to an electric age ushered in by Beijing. Otherwise, it will be stuck with outmoded products at home while China conquers markets through better technology.
Dan Wang is a research fellow at Stanford’s Hoover Institution and the author of “Breakneck: China’s Quest to Engineer the Future.”
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