Can the US Solar Manufacturers Win the Battle?
Whilst Mr. Obama has stated clearly that he wanted to make the United States “the world’s leading exporter of renewable energy”, it is China’s companies that quietly have established their domination in the green energy business, particularly in solar power. The Chinese have already dominated the market by successfully pushing down the price of photovoltaic panels by over fifty percent last year. This situation helps people who previously couldn’t afford to have their own home solar panels in the United States but on the other hand it’s not doing any good to the American clean energy equipment manufacturers. Many people worry that the local manufacturers can’t win the competition. Chinese companies are greatly supported by the government with cheap loans, labor and electricity cost, something impossible to find in the United States.
Will some protectionist legislation help to stop the Chinese solar products invasion? Not likely. The Chinese are furthermore preparing to build plants in the United States to assemble their products, something they learned from the Japanese automakers to combat the protectionist legislation many years ago.
It seems that the United States (and probably Europe as well) will become the consumers only unless they can push down their local products prices to stop the Chinese domination. Mr. Obama has to find a better solution to make his dream come true.
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