Energy now a focus of US-China contest of the century

Andrew Sheng is a former central banker and financial regulator, currently distinguished fellow at the Asia Global Institute, University of Hong Kong.Given that control over energy reinforces superpower status, the contest of the century has morphed into an intense rivalry between China, a rising “electrostate”, and the United States, the world’s hydrocarbon hegemon safeguarding its position.China recognises that electricity drives its economy. Despite being a major producer of coal, crude oil and natural gas, China remains an importer of these hydrocarbons. However, with strategic patience, through its five-year plans, the country has been diversifying into alternative energies, including solar, wind, hydro and energy" class="entity-link entity-topic" data-entity-id="141140" data-entity-type="topic">nuclear energy.Last year, China’s non-fossil-fuel power capacity surpassed that of fossil fuels for the first time – grid-connected wind and solar capacity alone now exceeds its coal capacity. Moreover, electricity generation using renewable sources has become cheaper than power generated by burning fossil fuels.