While America talks about energy innovation, our competitors are championing it. Just weeks after Chinese company Yingli Solar signaled its nation’s status as the world leader in solar technology at the World Cup, Bloomberg Bunsinessweek provided yet another reminder of China’s increasing competitive edge:

“China attracted more asset financing in clean-energy technology in the second quarter than Europe and the U.S. combined, Bloomberg New Energy Finance said…Financing of wind turbines, solar panels and low-carbon technology in China climbed 72 percent to $11.5 billion compared with the year-earlier quarter [while]…total new investment in clean energy worldwide, including share sales, venture capital, private equity and asset finance, slipped 3 percent to $33.9 billion in the second quarter from the same period last year.”

This news came on the same day that Devon Swezey, Project Director at the the Breakthrough Institute, testified before the U.S.-China Economic and Security Review Commission on China’s clean energy innovation policy and the steps the U.S. must take to remain competitive.  He explained to the commission that the Chinese government is simply putting more effort and resources into its clean energy industries:

“China is not out-competing the United States through some inherent comparative advantage, but through targeted and comprehensive public policy characterized by large and sustained public investment across the entire industry.”

Swezey goes on to point out a startling trend: America is no longer just losing manufacturing jobs, it is losing key investments in research and innovation because of it’s lack of sustained funding for clean energy.  The testimony builds on criticism of Washington for its paralysis in the face China’s ambitious energy policy.