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Krugman Says Iran War Is Shifting Clean-Energy Demand to China

He warns oil turmoil is steering buyers to renewable gear mostly made in China.

Overview

  • Krugman, in a Tuesday Substack essay, argues the Iran war is speeding a global pivot to solar, wind and battery storage.
  • He cites surging oil and gas prices and a closed Strait of Hormuz as reasons countries now seek to cut fossil-fuel risk, with France and Spain less exposed than gas‑reliant Italy.
  • He says China already dominates “electrotech,” the gear behind renewables such as solar panels, wind turbines, batteries and electric vehicles.
  • Krugman rejects Trump's claim that China does not use this equipment, pointing to rapid growth in Chinese wind and solar and to China’s share of more than 60% of global EV sales.
  • He argues Trump's rollback of Biden-era clean-energy programs and efforts to block private projects risk ceding manufacturing leadership and jobs to China.