sarfralogy
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- Jun 20, 2012
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In recent years, China has emerged as the dominant player in green energy -- especially solar power. But despite rapid growth in recent years, solar power is more entrenched in European countries like Spain and Germany. They have promoted its development with strong incentives called feed-in tariffs that require electric utilities to buy solar power at a high, fixed price. The United States accounted for $1.6 billion of the worlds $29 billion market for solar panels. It accounted for at least half of the worlds production in 2010, and its market share is rising rapidly. But, while most U.S., Japanese and European companies still have the technological edge, China has a cost advantage. Analysts have said China has achieved this dominance through lavish government subsidies in its solar industry that are detrimental to American companies and other foreign competitors.
The U.S. Commerce Department recently ruled that Chinese manufacturers are guilty of dumping solar panels in the US market for less than it cost to make them. This was a violation of World Trade Organization rules that harmed American manufacturers. As a result, the Chinese manufacturers -- including Wuxi Suntech Power Co., Ltd. And Changzhou Trina Solar Energy Col, Ltd., among others -- will have to start paying a tariff of more than 31 percent when their products enter the US market. The issue has divided the U.S. solar industry, with manufacturers complaining that Chinese trade practices are driving prices down artificially and smothering U.S. production. Others in the industry say the complaint is counterproductive, given that most solar-related jobs in the U.S. are in fields like installation and sales that have benefited from cheap Chinese panels. U.S. manufacturer Solyndra became highest-profile victim of plunging panel prices last year, forced to file for bankruptcy despite receiving $535 million in federal loan guarantees.
The U.S. Commerce Department recently ruled that Chinese manufacturers are guilty of dumping solar panels in the US market for less than it cost to make them. This was a violation of World Trade Organization rules that harmed American manufacturers. As a result, the Chinese manufacturers -- including Wuxi Suntech Power Co., Ltd. And Changzhou Trina Solar Energy Col, Ltd., among others -- will have to start paying a tariff of more than 31 percent when their products enter the US market. The issue has divided the U.S. solar industry, with manufacturers complaining that Chinese trade practices are driving prices down artificially and smothering U.S. production. Others in the industry say the complaint is counterproductive, given that most solar-related jobs in the U.S. are in fields like installation and sales that have benefited from cheap Chinese panels. U.S. manufacturer Solyndra became highest-profile victim of plunging panel prices last year, forced to file for bankruptcy despite receiving $535 million in federal loan guarantees.
