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September 10, 2010

China: Green cheater or green genius

On the surface, it certainly appears the great Red giant is a big Green cheat. Surprised? It's industrial policy, mercantilist trade, etc., right?

Well, first, it couldn't be a big Green cheat without lots of enabling by the U.S. and the EU. Nobody's filing WTO antidumping cases, even though this is clearly what Beijing is doing.
(M)ultinational companies and trade associations in the clean energy business, as in many other industries, have been wary of filing trade cases, fearing Chinese officials’ reputation for retaliating against joint ventures in their country and potentially denying market access to any company that takes sides against China.

And, proof this is not just illegal subsidies, but will actually become "dumping," if not already?
Government-subsidized turbine makers are now preparing for large-scale exports to the United States and Europe, which could also result in violations of W.T.O. rules.

Chicken-shittedness is alive and well, in other words. And, this isn't "unskilled labor," like making plastic trinkets arguably is.

In fact, this is at the heart of Preznit Kumbaya's green jobs push. Which is rapidly being undercut:
China is also on track to make nearly half of the world’s wind turbines this year. China offers financial incentives for utilities to use wind power, which is less costly than solar power, and the country passed the United States last year as the world’s largest wind turbine market.

Meanwhile, the Obama Administration is "beginning discussions" on how to respond. Just like this administration, a day late and 8.3 yuan short.

Instead of "beginning discussions," Team Obama needs to listen to Alan Tonelson and Kevin L. Kearns of the United States Business and Industry Council. The pair argue that we need to continue reducing our trade deficit as one part of continuing to stimulate the economy. Fighting Chinese dumping in green manufacture would be a good part of that program.

For a further look at some of these arguments, with a somewhat different angle than mine, visit Salon.

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