The Chinese Communist Party is secretly funding climate lawsuits against American energy companies, a Senate hearing revealed, exposing Beijing’s covert strategy to undermine U.S. energy independence while dominating green technology markets.
Key Takeaways
- A Senate subcommittee hearing titled “Enter the Dragon—China and the Left’s Lawfare Against American Energy Dominance” revealed alleged CCP funding of U.S. climate litigation.
- Energy Foundation China (EFC), reportedly controlled by CCP members, has been channeling funds to American climate advocacy groups that litigate against U.S. energy infrastructure.
- Senator Ted Cruz presented tax records showing EFC contributions to U.S. environmental groups like the Natural Resources Defense Council and Rocky Mountain Institute.
- China dominates global green technology supply chains while simultaneously working to undermine American fossil fuel production, creating a strategic advantage.
- Critics argue these foreign-funded legal attacks on U.S. energy pose a serious national security threat by increasing American dependence on Chinese supply chains.
China’s Strategic Energy Warfare Exposed
On June 25, Texas Senator Ted Cruz chaired a Senate Judiciary subcommittee hearing that pulled back the curtain on what witnesses described as a coordinated Chinese campaign against American energy dominance. The hearing, provocatively titled “Enter the Dragon—China and the Left’s Lawfare Against American Energy Dominance,” presented evidence suggesting the Chinese Communist Party is strategically funding climate litigation in the United States to cripple domestic energy production while simultaneously positioning itself as the global leader in green technology manufacturing.
Kansas Attorney General Kris Kobach testified about the multi-pronged strategy allegedly employed by the CCP, which includes funneling money through Energy Foundation China (EFC) to American environmental groups that then target U.S. energy producers with expensive litigation. These legal attacks aim to block pipeline expansions, promote bans on gas-powered vehicles, and otherwise hamstring American energy production capabilities. According to testimony, this legal warfare coincides with China’s aggressive expansion of its fossil fuel use domestically while cornering the market on green energy components.
Following the Money: CCP’s Green Deception
Senator Cruz presented tax records during the hearing showing that Energy Foundation China has made significant contributions to prominent U.S. environmental organizations, including the Natural Resources Defense Council (NRDC) and Rocky Mountain Institute (RMI). These groups have been actively involved in litigation against American energy companies and infrastructure projects. The hearing established links between EFC and the Chinese Communist Party, with Scott Walter of the Capital Research Center testifying that several EFC board members have direct ties to the CCP.
“China supplies 78% of the world’s solar cells, 80% of the world’s lithium-ion battery chemicals, and 73% of the world’s finished battery cells,” said Scott Walter
Walter’s testimony highlighted the economic motivation behind China’s strategy. By funding litigation that hampers American fossil fuel production while dominating green technology manufacturing, China creates a win-win scenario for itself. American energy production suffers while U.S. dependence on Chinese-made alternative energy components increases. The hearing also revealed that EFC has funded American universities and events promoting climate cooperation between the U.S. and China, further extending its influence into academic and policy circles.
Judicial Influence and Political Division
The hearing exposed another concerning aspect of this strategy: the alleged indoctrination of the American judiciary on climate issues. Witnesses testified about the Climate Judiciary Project, which provides climate science education to federal judges. Critics argued that this project, funded by the same entities supporting climate litigation, potentially biases the judicial system against energy companies before cases even reach the courtroom. Senator Cruz questioned the propriety of judges receiving education from advocacy groups with direct interests in ongoing litigation.
“You wrote an article in 2023 entitled, ‘Climate Homicide: Prosecuting big oil for climate deaths,” said Ted Cruz
The hearing highlighted deep partisan divisions on the issue. Democratic Senator Sheldon Whitehouse dismissed the allegations as a distraction from the oil and gas industry’s influence campaigns, suggesting the focus on Chinese funding was merely a tactic to delegitimize climate litigation. He drew parallels between climate litigation and successful lawsuits against tobacco and pharmaceutical companies, suggesting energy companies could face similar legal consequences for their environmental impact.
National Security Implications
Witnesses emphasized that this issue transcends ordinary political debates about energy policy and climate change. They framed it as a matter of national security and sovereignty, arguing that allowing foreign adversaries to manipulate America’s energy landscape through proxy litigation poses existential threats to U.S. independence. Attorney General Kobach highlighted the strategic disadvantage created when American energy production is constrained while China continues rapid expansion of its fossil fuel usage and control of green technology supply chains.
The hearing concluded with calls for policymakers to address these issues through greater transparency in foreign funding of nonprofit organizations and litigation, as well as closer scrutiny of China’s influence operations in the environmental space. Senator Cruz suggested the evidence presented should concern Americans across the political spectrum who value energy independence and national security, regardless of their positions on climate policy. The revelations provide a troubling glimpse into how courtroom battles over climate policy may be influenced by geopolitical rivals seeking strategic advantage over the United States.
