U.S. Energy Red Tape Gives China an Edge

Former economic and national security officials argue that the United States needs to pass the Bipartisan American Affordability and Jobs Act of 2026 to compete economically and industrially with China. The bill, introduced in the Senate at the end of September, would streamline permitting processes for energy infrastructure projects and requires data centers to pay for new transmission built to support them.

The bill has been backed by the American Petroleum Institute and major energy companies, who argue it provides investment certainty. However, opponents view it as anti-environmental and a means to expedite AI data center and fossil fuel infrastructure development. Former officials of six U.S. presidents, including Mike Pompeo and Janet Yellen, assert that the U.S. cannot afford energy infrastructure projects to be stalled for years, as it would compromise national security and economic growth.

They also note that China has built more high-voltage transmission lines in the past 15 years than the U.S. has built in its entire history, and in 2024, China accounted for 31.5% of global knowledge and technology-intensive manufacturing value added, compared to 20.7% for the United States. Former officials urge Congress to pass the permitting reform bill, stating that it is essential for America to build, grow, tackle climate change, and maintain technological leadership.