Military blocked from importing Chinese solar panels
Image via WikipediaThe military appropriations law signed by President Obama on Friday contains a little-noticed “Buy American” provision for the Defense Department purchases of solar panels — a provision that is likely to dismay Chinese officials as President Hu Jintao prepares to visit the United States next week.It sounds like consumers are betting the benefit of Chinese subsidies, i.e. reduced prices, as well as local subsidies from government. For most applications solar energy is still not efficient enough to make it a good investment.
Although there are many big issues to discuss, including concerns about North Korea, trade and economic matters are certain to be high on the agenda. And while both sides are aiming to keep the discussion positive — the United States is the world’s largest importer and China the largest exporter of goods — simmering resentments over trade in green-energy technologies could be a distraction.
China has emerged as the world’s dominant producer of solar panels in the last two years. It accounted for at least half the world’s production last year, and its market share is rising rapidly. The United States accounts for $1.6 billion of the world’s $29 billion market for solar panels; market analyses typically have not broken out military sales separately.
The perception that Beijing unfairly subsidizes the Chinese solar industry to the detriment of American companies and other foreign competitors has drawn concern in Congress. The issue of clean-energy subsidies is also at the heart of a trade investigation under way by the Obama administration, which plans to bring a case against China before the World Trade Organization.
The new Buy American provision, created mainly by House and Senate conferees during a flurry of activity at the end of the lame-duck session of Congress, prevents the Defense Department from buying Chinese-made solar panels.
The American military is a rapidly growing consumer of renewable energy products, because it is extremely expensive and frequently dangerous to ship large quantities of fuel into remote areas of Iraq and Afghanistan.
...
While the United States and Europe have focused on subsidizing buyers of solar panels, China has emphasized subsidies for solar panel manufacturers. It then exports virtually all of its panels to the United States and Europe, often helped by the American and European consumer subsidies.
...
For the military, it probably is a good investment and the military can always order a Pfc. with a bottle of Windex to keep the panels clean. Not many home owners are going to climb on their roof for regular cleanings.
There are some US producers of solar panels who are still competitive with the Chinese because of manufacturing differences and technical innovations. For the military, making the units lighter would also be an advantage.
Is the "buy American" issue that important to the Chinese? I am sure they would love to buy or steal US technology for their new stealth fighter.
Comments
Post a Comment