Nobel Prize-winning economist Paul Krugman stated that the US-Iran conflict is reshaping the global energy market, and China will become the biggest winner in the field of new energy.

China's Dominance in the Energy Future Will Arrive "Ahead of Schedule"

Krugman pointed out that due to Trump's hostile attitude towards the energy revolution, the biggest winner will be China. The reason is that China dominates the production of renewable energy infrastructure, and he further anticipates that China's leading role in the energy future will arrive ahead of schedule.

Krugman cited an analysis from The New York Times regarding European electricity prices, indicating that the surge in oil and natural gas prices, coupled with threats of supply shortages, highlights the risks of relying on fossil fuels. He believes that US military actions against Iran will trigger a global investment boom in solar energy, wind energy, and the use of renewable energy to power batteries, with most of the renewable energy equipment needed globally being primarily sourced from China. He pointed out that China has strong capabilities in many industrial sectors, particularly in the electrical technology field, where it holds an absolute leading position in core industries of the renewable energy revolution, such as solar panels, wind turbines, electric vehicles, and batteries.

The Notion That China "Only Produces, Does Not Use" is a Misunderstanding

Krugman stated that opponents of renewable energy generally hold a misunderstanding, believing that China only produces and sells renewable energy equipment but does not use it themselves. He mentioned that three months ago, Trump stated at the World Economic Forum that China manufactures almost all the wind turbines used for wind power generation, yet there are no wind farms to be found in China. Krugman countered that while China still uses a large amount of coal, the use of wind and solar energy is rapidly increasing, with China's renewable energy growth rate expected to surpass the global total by 2024.

Krugman believes that China is constructing an industrial production system composed of specialized suppliers, and the cost advantages brought by this industrial ecosystem give China a significant competitive edge in the global market. He anticipates that even if the US breaks free from its reliance on fossil fuels in the future, China's leading position in renewable energy manufacturing will be difficult to shake, bluntly stating that the US is handing over the most important industries of the future to China