Blaming Beijing?

This Week's Trend In Brief:

• Accusations of Chinese influence are back in the headlines of the energy industry, shifting from corporate investments to wider questions of foreign involvement in U.S. energy debates.

   

• During the Biden Administration, scrutiny on the energy industry fell largely on the Chinese ties of companies investing in U.S. renewables, but today the spotlight has shifted to allegations of Beijing fueling environmental NGOs here in the U.S.

   

• That may tempt companies to lean into the scrutiny of these opposing voices, but they should proceed with the wariness that clean energy firms lacked under Biden-era scrutiny, which left them exposed over their Chinese ties.

   

• Nor is this the first time environmental NGOs have been accused of acting as vehicles for foreign influence – and history shows that the headlines can often outpace the hard evidence.

   

• Companies need to vet the claims carefully, separate fact from rumor, and understand the real networks behind the activism before using “Chinese influence” as a line of attack – ensuring the debate is defined by facts, not speculation.

Digging Deeper:

Accusations of Chinese influence are once again in the headlines of the energy industry, with new claims linking China to climate activists in the U.S. State Armor, a defense research firm focused on safeguarding the U.S. from China, alleged that domestic environmental groups are coordinating with the Chinese Communist Party to influence climate policy and undermine U.S. national security. Other defense advocates have accused activist groups of forming a “shadowy alliance” with China, and now Republican lawmakers are intensifying scrutiny of the alleged ties, arguing Beijing may be fueling domestic campaigns against energy development. Lawmakers point to lawsuits targeting energy companies for climate damages and broader efforts that could weaken U.S. production while strengthening China’s position in global energy markets. Attempts to identify Chinese and other foreign influence in the domestic energy industry are not new, and these claims make for attention-grabbing headlines. But public affairs professionals and the companies they represent must ensure they understand the facts through reliable research and ground their strategies accordingly to avoid reputational or political blowback.

During the Biden Administration, scrutiny focused largely on the Chinese ties of companies making renewable investments in the U.S., but today’s accusations focus specifically on the domestic environmental movement. Republicans used those China connections to investigate energy companies with links to China and attack Biden’s climate agenda, portraying his clean energy push as a gift to Beijing. Today, that scrutiny has shifted toward alleged links between China and U.S. climate activism. National security and energy experts now warn that, rather than exporting cheap products, the Chinese Communist Party is waging influence campaigns through a “shadow alliance” with activists, allegedly bankrolling efforts that target American energy projects. The charge is that climate activists are doing Beijing’s bidding by advancing policies that weaken U.S. energy and strengthen China’s position. These claims may sound compelling, but companies should be cautious before embracing them, recognizing that unproven allegations can create risks as serious as the activism itself.

Allegations of Chinese influence may be tempting for companies looking to expose hidden motives of their opponents, but they should proceed with the wariness that clean energy firms lacked under Biden-era scrutiny of Chinese ties. Companies that went all-in on Biden’s push for renewables, which opened the door for China to expand its footprint, soon found themselves the target of investigations from officials and watchdogs, who raised alarms over Beijing’s ambitions and national security risks. Now, those same watchdogs and state officials have advanced new claims that Beijing is quietly backing U.S. climate groups to undermine fossil fuels and tighten America’s reliance on Chinese clean energy supply chains. Defense watchdog State Armor urged Congress to investigate, and Kansas Attorney General Kris Kobach pressed the Justice Department with similar warnings about “environmental lawfare” designed to weaken domestic energy in favor of Chinese solar and EV dominance. These charges generated headlines, but concrete evidence of direct ties between American nonprofits and the CCP remains thin. While Beijing’s global influence campaigns are well-documented, companies are held to a higher bar than unverified allegations and must ground their strategies in facts, not speculation. For industry, the challenge is to separate perception from reality, recognizing that even unproven claims can carry reputational and political risk if handled carelessly.

This is not the first time environmental NGOs have been accused of acting as vehicles for foreign influence, and history shows the headlines often outpace the evidence. For over a decade, lawmakers and officials have repeatedly alleged that other foreign governments have waged covert campaigns to damage the U.S. energy sector. Congressional lawmakers have accused Russia of waging a “propaganda war” against fossil fuels, contending Russia wanted to use nonprofits to influence U.S. energy policy. Officials have also accused Russia of funding U.S. climate groups to target energy infrastructure as part of the Kremlin’s goal to keep the U.S. and Europe “addicted to Russian gas.” Those claims generated major headlines, but ultimately were backed by little proof. Today’s allegations that China is bankrolling climate activism represent the latest chapter in a pattern of politicians invoking foreign meddling to score political points. For those across the energy industry, it is more important than ever to test the veracity of these claims before rushing to embrace them, or risk being defined by allegations that may never be substantiated but still carry lasting reputational, regulatory, and investor consequences.

Energy companies must do their due diligence, looking beyond the temptation to dismiss opponents as foreign proxies and instead scrutinizing what the activism really is, who is driving it, and what can actually be confirmed. Projects caught up in allegations of foreign influence could face heightened scrutiny, with activists cast – fairly or not – as geopolitical pawns. In this environment, perception can matter as much as reality, and firms that fail to get ahead of the narrative risk being defined by it. The companies best positioned to navigate these debates are those that invest early in understanding the claims, the actors advancing them, and the political agendas they serve. In today’s political climate, where speculation often drives headlines, public affairs professionals and the companies they represent must ground their strategies in facts and anticipate how narratives – whether true or not – can carry reputational, regulatory, and operational consequences across the sector.

Trends in Energy is your weekly look at key trends affecting the energy industry, brought to you by the competitive intelligence experts at Delve. As the political and regulatory landscape continues to shift, reach out to learn how our insights can help you navigate these challenges.