Shanghai, China – China has made a substantial national commitment to the commercialization of fusion energy, allocating approximately $2.1 billion in new funding to establish China Fusion Energy Co. This strategic move positions the Shanghai-based entity as the central state-controlled vehicle for advancing fusion technology, aiming to lead the global race for this potentially transformative energy source.

The newly formed company integrates expertise from major Chinese universities, industrial powerhouses, and state-owned energy companies, many of which are direct investors. Its primary objective is to cultivate a robust domestic fusion industry, a development described by Chinese press as the 'national team has arrived,' signaling a concerted effort to replicate the innovation ecosystems seen in leading technological nations.

China Fusion Energy Co. plans to develop fusion devices known as tokamaks, mirroring approaches taken by leading private U.S. firms such as Commonwealth Fusion Systems. Notably, the Chinese initiative will also leverage high-temperature superconductors, a technology validated by its U.S. counterparts for enabling more compact and economically competitive power plants. This parallel technical strategy underscores the global consensus on promising pathways for fusion energy development, while simultaneously highlighting China's aggressive entry into the commercialization phase.

RAND analyst Jimmy Goodrich, who closely monitors Chinese science and innovation efforts, stated, 'This is a clear signal that Beijing is consolidating its fusion efforts into a full-scale, nationally coordinated industrial strategy.' This centralized approach contrasts sharply with the fragmented U.S. efforts, raising concerns among industry leaders. Bob Mumgaard, co-founder and CEO of Commonwealth Fusion Systems, observed that China's coordinated state action has now 'fully entered the race for fusion energy,' suggesting a potential shift in global energy leadership.

Historically, China's manufacturing prowess, extensive supply chains, and centrally driven development models have enabled it to dominate emerging industries, including solar panels, batteries, and electric vehicles—many of which originated from U.S. innovation. The U.S. government's current investment in fusion commercialization lags significantly; a recent Government Accountability Office report indicated that only about 1% of Department of Energy-funded fusion efforts support commercialization through its modestly funded Milestone-Based Fusion Development Program.

Experts suggest that for the U.S. to maintain competitiveness in fusion energy, a radical improvement in federal commitment is necessary. The Department of Energy Fusion Energy Sciences Advisory Committee's 2020 long-range plan, 'Powering the Future: Fusion and Plasmas,' outlines critical research facilities needed to accelerate deployment and scaling for all fusion companies. However, it is China, not the U.S., that is actively constructing these essential research test stands and facilities. The strategic control over future energy sources, particularly those with the potential for carbon-free generation, is seen as pivotal for national prosperity, economic development, and geopolitical influence in the coming decades.