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Hormuz Shock Pushes Nations Toward China’s Clean-Energy Supply Chain

Unstable U.S. rules are pushing energy capital toward Chinese suppliers.

Overview

  • The closure of the Strait of Hormuz set off energy emergencies that pushed countries to fast-track solar, wind, batteries, and electric cars, with the Philippines and South Korea moving early.
  • China is taking most of the new demand because it leads the making of solar panels, lithium-ion batteries, and EVs after years of heavy investment.
  • Beijing’s leverage runs upstream and across the grid, with about 70% of global refining for key minerals and state firms selling complete hardware and software to build and run power networks abroad.
  • U.S. energy executives told Semafor that permits that flip, shifting tax credits, and constant lawsuits are scaring investors, and Constellation’s CEO said the country is very far behind China.
  • Near-term power needs could lift coal use because LNG capacity in Qatar is damaged and buyers now doubt the reliability of seaborne gas even as renewables expand.