Texas Senator Ted Cruz has stirred controversy with his claim that China is secretly bankrolling U.S. climate lawsuits aimed at crippling America’s energy industry. Speaking at a Senate Judiciary Subcommittee hearing, Cruz declared that “foreign money from entities tied to the Chinese Communist Party flows into the United States to bankroll climate advocacy groups who litigate against American energy.” He described the lawsuits as a “full-spectrum assault” designed not just to win in court, but to bankrupt oil and gas producers and dismantle U.S. energy infrastructure.
The national press has been quick to emphasize that Cruz “offered no evidence.” Yet Cruz, a seasoned senator and chair of the hearing, likely has access to intelligence and investigative briefings not available to reporters. It would be naïve to assume that a sitting U.S. senator makes such a serious allegation without some underlying information.
The Lawsuits at Issue
The wave of climate litigation Cruz is pointing to has grown dramatically in recent years. States and cities such as Honolulu, Boulder, and California have sued major oil companies, accusing them of misleading the public about the risks of fossil fuels. The lawsuits demand billions to cover damages from floods, heatwaves, wildfires, and storms. In January, the Supreme Court refused to block Honolulu’s lawsuit, and in March it declined a request by Republican attorneys general to halt similar cases in states like Minnesota and Rhode Island.
Cruz warns that these lawsuits are more than local disputes. If successful, they could sharply reduce U.S. oil and gas production, driving up prices and destabilizing the American energy economy. “And the biggest winner in all of this: China, who’s paying the bills,” Cruz said during the hearing.
China’s Strategic Interest
Cruz argues that China’s motivation is clear. The country dominates global markets for solar panels, electric vehicles, and battery components. It continues to build coal plants at home while locking in oil and gas contracts with OPEC+ abroad. If U.S. fossil fuel producers are weakened by costly litigation, America could become more dependent on Chinese-controlled supply chains.
Cruz described Energy Foundation China, a nonprofit headquartered in San Francisco with close ties to Beijing, as “one of the primary vehicles” through which Chinese influence is funneled into U.S. environmental causes. He told the hearing that the money “isn’t going to tree-planting campaigns or to science fairs. It’s flowing directly to aggressive litigation outfits, like the Natural Resources Defense Council, the Rocky Mountain Institute and the World Resources Institute.”
Many in the energy industry share Cruz’s concern. Ryan Meyers, general counsel for the American Petroleum Institute, said the lawsuits are “baseless” and represent a “coordinated campaign” against U.S. energy. “Climate policy belongs in Congress, not a patchwork of courtrooms,” Meyers told NPR.
Kansas Attorney General Kris Kobach, who testified alongside Cruz, said that Congress needs to dig deeper. “I think that where Congress can be helpful in these cases is in getting to the bottom of where the money is coming from,” Kobach said. A group of Republican attorneys general has already called for federal legislation to shield energy companies from what they describe as “activist-funded climate lawsuits.”
Dan Eberhart, CEO of Canary, LLC, wrote in Forbes that climate litigation and China’s influence campaigns are working “in parallel to undermine U.S. energy dominance.” He noted that groups like Energy Foundation China have “spent millions supporting anti-fossil fuel groups in the United States” and warned that this plays directly into Beijing’s strategic interest.
Not surprisingly, the nonprofits accused by Cruz have rejected his claims. Michael Wall of the Natural Resources Defense Council said funding from Energy Foundation China is used exclusively for programs in China. “In the U.S., NRDC has sued government agencies and corporations that have violated environmental laws,” Wall explained, but insisted that Chinese money has not been directed to those lawsuits.
Adam Beitman of the Rocky Mountain Institute went further, saying that the nonprofit “does not participate in litigation” and that all of its Chinese funding is focused on the energy transition inside China. Alison Cinnamond of the World Resources Institute echoed this point, saying WRI’s work in China focuses on air quality and sustainable cities, not litigation.
Senator Sheldon Whitehouse, a Democrat from Rhode Island, said at the same hearing that Cruz failed to show the money was used for lawsuits rather than pollution-reduction projects in China.
Skeptics
Some academics and analysts have also voiced skepticism. John Chung-En Liu, a sociologist at National Taiwan University, called Cruz’s framing “an easy tactic” to whip up opposition. “China doesn’t have a very good name in Washington, D.C.,” he explained, and linking lawsuits to Beijing is an effective way to rally critics. Ilaria Mazzocco, a senior fellow at the Center for Strategic and International Studies, warned that while any Chinese influence would be troubling, “we should be very careful to actually know what’s real and what’s not.”
Despite the denials, the pattern of funding raises serious questions. Tax filings confirm that Energy Foundation China has given money to groups like NRDC, RMI, and WRI. Other nonprofits, such as the Resources Legacy Fund, have received money from Energy Foundation China and then distributed grants to law firms like Sher Edling, which has filed many of the climate lawsuits. Even if the funds were earmarked for other purposes, money is fungible, and these connections make Cruz’s warnings plausible.
Energy Foundation China itself admits to working closely with Chinese institutions. One of its executives, Vance Wagner, acknowledged that its staff is largely based in Beijing. National security experts have long warned that China exploits exactly these kinds of relationships to advance its goals.
For Cruz, the bottom line is that America cannot afford to ignore the possibility of foreign influence in litigation that threatens to reshape its energy sector. “The judiciary itself is being quietly captured and brainwashed,” Cruz warned, pointing to closed-door trainings for judges hosted by activist nonprofits. Whether one agrees with his framing or not, the possibility that Beijing is influencing American courts through intermediaries should concern anyone focused on national security.
A Bigger Battle Over Energy Policy
The clash over Cruz’s claims reflects a larger struggle over the future of U.S. energy. Richard Wiles of the Center for Climate Integrity said Cruz’s allegation is designed “to create political cover” for Congress to grant fossil fuel companies legal immunity. But Cruz and his supporters argue that shielding U.S. energy from foreign manipulation is a matter of survival.
China continues to expand its energy footprint, both in fossil fuels and in clean energy technologies. As Liu of National Taiwan University put it, Beijing prefers that the U.S. “not take climate very seriously, and let China take over all the EVs, take over solar and wind.” In that sense, Cruz’s warning highlights a stark reality: the battle over climate lawsuits is not just about the environment.
ACZ Editor: Ted Cruz is certainly correct, China’s intelligence machine is involved in anything that might provide an advantage for China. Some of the media sources indicate that he was “without evidence.” Take my word for it, U.S. Senator has access to information that PBS and NPR do not have.