US vs. China: The Race to Finance Global Energy

To outcompete China in the global energy market, the United States must modernize its export finance strategy to support American workers, innovation, and international leadership. If America doesn't lead the development of future energy technologies, China will.

China's Dominance in Global Energy Finance

For American companies, financing major energy and infrastructure projects in emerging markets is a massive challenge. China is currently filling that gap.

Analysis from ClearPath reveals that since 2015, China has financed at least $446 billion in global energy projects and exports. This figure is nearly ten times the amount invested by the United States. China achieves this through state-sponsored tactics, including huge subsidies and predatory lending practices that stifle fair market competition and put American firms at a distinct disadvantage.

America's Counter-Strategy: Innovate, Build, Export

The Trump administration has positioned energy security as a core component of U.S. foreign policy, from promoting American nuclear technology abroad to securing critical mineral supply chains. The strategy is straightforward: innovate in America, build in America, and sell to the world.

To execute this vision, Washington must empower private sector innovation and sharpen America’s competitive edge. The goal is not to match China’s subsidies but to use targeted financing tools that de-risk projects, attract private capital, and create favorable market conditions for U.S. innovators and manufacturers.

This approach is being championed by the leadership of the Export-Import Bank (EXIM). The bank's new Chairman, John Jovanovic, has organized EXIM around four key priorities:

1. Putting American jobs first.

2. Advancing U.S. energy dominance.

3. Ensuring supply chain security.

4. Clearing a path for industries of the future.

As Chairman Jovanovic stated, "Time is our biggest enemy and every day we come to work with a sense of urgency to support American workers, manufacturers and our nation's economic security."

Policy Tools for Global Competition

While the American private sector is the world's most innovative, it cannot single-handedly compete against China's heavily subsidized state-owned corporations. This is where strategic policy tools become essential.

A major first step was the bipartisan reauthorization of the U.S. Development Finance Corporation (DFC). Enacted in December 2025 as part of the National Defense Authorization Act for Fiscal Year 2026, the DFC Modernization and Reauthorization Act expanded the agency’s lending capacity from $60 billion to $205 billion. It also established a $5 billion revolving equity fund to attract private capital and expanded country eligibility, allowing the DFC to support strategic energy and infrastructure projects more effectively.

Modernizing EXIM: The Crucial Next Step

With its reauthorization due by the end of this year, modernizing the Export-Import Bank is the next critical objective. Strategic reforms at EXIM can directly address America's top priorities.

Put American Jobs First

Every $1 billion in EXIM financing supports approximately 4,100 American jobs and generates about $50 million in revenue for taxpayers. However, outdated domestic content rules often prevent the financing of more projects. These rules should be replaced with a modern standard directly linked to job creation and national interest.

Advance American Energy Dominance

EXIM's China & Transformational Exports Program (CTEP), created during the first Trump administration, was a positive start. Today's competitive landscape demands a broader approach. Expanding the program, exempting strategic energy projects from the default rate cap, and aligning EXIM’s risk tolerance with the DFC’s would give American energy technologies a better chance to lead globally.

Secure Critical Supply Chains

Codifying and strengthening the bank's Make More in America (MMIA) and Supply Chain Resiliency (SCRI) initiatives can boost U.S. manufacturing and secure access to essential minerals. The reauthorization is an opportunity to cement EXIM's role as a key tool for building trusted and resilient supply chains.

Clear the Path for Future Industries

Creating a National Interest Account would give the bank maximum flexibility to finance next-generation energy technologies, from enhanced geothermal to small modular reactors. This would update the bank's risk framework to prioritize projects based on job creation and national security, ensuring that future innovation is driven by American businesses and workers.

Now is the time for Congress to enact these targeted reforms. Modernizing EXIM’s mission and capabilities will provide the flexibility needed to drive U.S. clean energy leadership and support the American workforce on the global stage.