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Investigation Reveals Energy Foundation China’s Role in Undermining U.S. Energy Independence

FIRST ON FOX: A nonprofit organization dedicated to national security has unveiled a detailed report revealing the operations of a seemingly U.S.-based organization that allegedly threatens American energy sovereignty. The study claims this organization promotes leftist green initiatives while favoring Chinese interests.

The report, published by State Armor, tracks the financial activities of Energy Foundation China. This entity is registered as a 501(c)(3) nonprofit and claims to be based in San Francisco, although its employees are primarily situated in Beijing.

Energy Foundation China, previously known as the Energy Foundation, transitioned in 2019 by reallocating its U.S. operations to a new entity dubbed the U.S. Energy Foundation. The report clarifies that since its rebranding, Energy Foundation China, or EF China, still bears its original name but has been using the new title to distinguish itself from its American counterpart. Hal Harvey, an activist focused on climate issues, founded the organization and has connections with various left-leaning groups as well as China.

According to State Armor, EF China has allocated millions annually to support climate advocates promoting the reduction of fossil fuel use and the adoption of alternative green energies. Noteworthy beneficiaries include the Rocky Mountain Institute (RMI) and the Natural Resources Defense Council (NRDC). The NRDC faced scrutiny in 2018 amid a Congressional inquiry to determine if it should register as a foreign agent due to its funding connections with China.

The Rocky Mountain Institute has produced influential studies that many Democrats cite to back efforts to restrict gas stoves, aligning with recommendations from President Biden’s Department of Energy.

Earlier this year, several Congressional committees initiated an investigation into EF China. They sought documentation from EF China President Zi Chou regarding the financial contributions made to American organizations, following reports indicating that the group was channeling substantial funds into climate initiatives across the U.S.

The report details EF China’s contributions to legislative efforts in the U.S., specifically a campaign against Bayer, a leading Western fertilizer provider. This campaign involved pushing for lawsuits against Bayer due to concerns over a pesticide potentially linked to cancer. The goal appeared to be steering reliance away from American suppliers toward Chinese alternatives.

Furthermore, the report highlights that EF China has financed millions to the International Council on Clean Transportation (ICCT), supporting initiatives described as steps toward a clean energy future. The ICCT actively endorsed climate policies included in the Inflation Reduction Act aimed at enhancing infrastructure for battery electric trucks.

In particular, Fox News Digital reported that EF China funnelled $480,000 to the Washington D.C.-based ICCT for their advocacy of broad electric vehicle (EV) adoption while also financing projects aimed at phasing out coal dependency with grants amounting to $450,000 to the University of Maryland and the Jackson Hole Center for Global Affairs.

Josh Hodges, who serves as a Commissioner on the U.S.-China Economic and Security Review Commission and was previously a National Security Advisor, remarked that EF China exemplifies how the Chinese Communist Party employs asymmetrical warfare strategies to extend its influence over American corporations.

Hodges elaborated that China appears to be manipulating a philanthropic network to divert the U.S. from reliable energy independence into dependence on Chinese supplies. He noted, whether involving solar panels or electric vehicle batteries, China’s influence permeates the green energy transition in the U.S.

The report references Liu Zhenmin, a Chinese climate envoy, asserting that Biden’s green energy policies are likely to persist even if a skeptical Trump administration were to return to power. Zhenmin indicated that even with political shifts, the transition to green energy in the U.S. would remain inevitable.

This suggests that the Chinese Communist Party’s infiltration into American politics and industry is so extensive that CCP officials are confident in a continued shift toward dependence on their technologies irrespective of changing administrations.

Will Hild, the Executive Director of Consumers’ Research, contended that the findings indicate a worrisome reality. He stated that EF China participates in a larger scheme aimed at damaging U.S. energy independence and obstructing the Trump administration’s energy initiatives in favor of the CCP.

Hild stated further that EF China leverages ideological strategies to execute this plan, pressuring American consumers into reliance on energy from the Chinese Communist Party. He emphasized that Americans deserve transparency regarding foreign adversaries undermining their economy and energy future. Hild praised State Armor for its role in exposing these operations.

The investigation also highlights how Beijing utilizes climate activism to strengthen its position globally, as the report identifies connections between EF China and the CCP. For instance, EF China’s CEO, Zou Ji, previously held senior positions at China’s National Center for Climate Change Strategy within the National Development and Reform Commission.

The report notes Zou’s prominence in Chinese climate policy, including his role on China’s delegation to the Paris Climate Talks in 2015. Additionally, it mentions his affiliations with Tsinghua University, where he worked alongside individuals with military ties.

Moreover, EF China Board Member Hongjun Zhang has a background in high-ranking positions within the Chinese government and currently participates in the Council for International Cooperation on Environment and Development. His law firm’s biography indicates his extensive experience with various Chinese ministries, shedding light on Zhang’s institutional connections.

The report asserts that EF China’s operations are directly monitored by the CCP’s National Development and Reform Commission. Notably, their Beijing office is located in a building owned by an investment firm associated with state media propaganda.

Rep. John Moolenar, from Michigan, and Chairman of the House Select Committee on Strategic Competition Between the United States and the Chinese Communist Party, expressed concern over the findings. He affirmed that the report substantiates long-held warnings regarding the use of seemingly innocuous nonprofits by the CCP to influence U.S. policy.

Moolenar stated that Energy Foundation China operates under the CCP’s directive and exploits the American charitable system to promote policies that serve Beijing’s interests while undermining those of American citizens. He confirmed that the committee will persist in investigating how CCP-aligned entities infiltrate U.S. institutions, redirect critical supply chains toward China, and craft environmental policies that could weaken American standing while promoting Chinese power.

The report also illustrates EF China’s efforts to collaborate with U.S. officials, including support for a forum that featured California Gov. Gavin Newsom during a visit to China, encouraging discussions on low-carbon cooperation between the two nations.

In response to the allegations, Vance Wagner, the vice president for strategic partnerships at Energy Foundation China, defended the organization. He claimed that EF China is an independent charitable body funding climate change research and capacity building.

Wagner labeled climate change as a significant global threat, pointing out that EF China’s focus on its domestic energy sector is necessary given the scale of emissions. He insisted that engagement with China on climate change is beneficial for all parties involved.

He maintained that EF China operates within the bounds of U.S. and Chinese laws, denying any influence from the Chinese government or CCP in the organization’s activities.

The report notes that from 2020 to 2021, EF China contributed over $1 million to the Department of Energy’s Lawrence Berkeley National Laboratory to advance green energy research and improve the efficiency of China’s industry.

Moreover, it mentions that the Biden administration has provided $60 million in grants to the Institute for Sustainable Communities, a group that frequently collaborates with Energy Foundation China.

Jason Isaac, CEO of the American Energy Institute, emphasized the strong association between energy security and national security. He remarked on the importance of the report in revealing the ways the CCP has co-opted climate activism to lead the U.S. into dependence on green technologies controlled by China.

Isaac warned that the U.S. is increasingly entangled with a foreign adversary aiming for dominance over the energy market while neglecting ethical labor practices and environmental protections. He called for an energy strategy that fully utilizes America’s rich domestic resources rather than outsourcing responsibilities to China.

In alignment with these findings, State Armor is urging Congress to take immediate action. The organization has sent letters to Republican committee chairs calling for oversight to fully uncover the extent of Energy Foundation China’s operations.

The correspondence from Lucci asserts that Congress must take a stand. He emphasized that prompt oversight is necessary to reveal the scope of EF China’s activities and its critical role in the geopolitical contest impacting U.S. energy security and leadership.

Fox News Digital’s Thomas Catenacci and Joe Schoffstall contributed to this report.