China now produces more than twice as much electricity as the United States, underscoring its rise as the world’s dominant economic power, economist Paul Krugman wrote this week. Highlighting the widening gap, Krugman noted that China’s economy has already surpassed America’s in real terms at purchasing power parity (PPP), and warned that Washington’s current energy and science policies are accelerating the decline.
“Instead of another Sputnik moment, we’re living through a reverse Sputnik moment,” Krugman wrote. “Rather than recognizing the danger of being permanently overtaken by China’s technological and economic advances, the Trump administration is slashing support for research and education. In the name of fighting so-called ‘wokeness’ and the ‘deep state,’ it’s attacking progress while empowering grifters like the crypto industry.”
Krugman pointed to Donald Trump’s hostility toward renewable energy as one of the most damaging policy shifts. The administration’s “One Big Beautiful Bill” rolled back Biden-era clean energy tax incentives, derailing major renewable projects. A nearly completed offshore wind farm that could have powered hundreds of thousands of homes is now at risk of cancellation, while a solar project capable of supplying electricity to 2 million households has been scrapped.
In addition, the White House revoked $7 billion in residential solar grants and cut $8 billion in clean energy funding, disproportionately affecting Democratic-led states. Reports suggest that tens of billions more in renewable energy grants could soon be eliminated.
Energy Secretary Chris Wright defended the cuts, calling solar power unreliable: “You have to have power when the sun goes behind a cloud and when the sun sets, which it does almost every night.” However, Krugman noted that California’s success with large-scale battery storage contradicts this claim, proving that renewable systems can be both sustainable and dependable.
Krugman warned that if current trends continue, the U.S. could fall irreversibly behind China by 2028, not only in energy production but in technological innovation more broadly.
“Is America losing the race for global leadership? No — that race is already over,” he concluded. “Even if Trump and his team of saboteurs lose power in 2028, America will have fallen so far behind that catching up to China may no longer be possible.”
