U.S. Solar Companies' Complaint Driven by Envy, China Says

[Jason]

Last week, we discussed how seven U.S. solar manufacturers filed a petition with the Department of Commerce and the International Trade Commission for the U.S. government to raise duties on Chinese solar imports by more than 100%. In their petition, these solar manufacturers argued that they have been injured by Chinese manufacturers' dumping of crystalline solar cells on the U.S. market at prices below production costs. China Energy News reported today that this was a foolish, misguided attempt at trade protectionism driven by jealousy.

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[Naptown]

Since Most module fabrication is robotic as witnessed at SPI low cost modules would increase domestic installations. This cannot be outsourced particularly in the residential markets. Yes we are giving up a few domestic manufacturing jobs but the integration market on the residential level more than makes up for it.

[Sunking]

Here is my two cents on Global Economics.

Buy the least expensive product that meets the needs regardless of where or who made it.

Here is why. If the USA were to put import tariffs on a product or service to force you to buy US made products or services means those products and services will cost you more money. That means you have less to buy other products that stimulate the economy.

[vinniethePVtech]

All it really comes down to is the share holders of the 6 solar firms that created this coalition want to maximize profits. Most of these solar companies less than 4 years ago were making 30% profit margins on PV and are now complaining because margins are under 12%. Capitalism is survival of the fittest if the Chinese want to sell to us at a loss so be it.

Look at companies like yingli and suntech power that are companies on break even margins that float close to bk levels.

It's a clear look it's about profiting only from u.s companies stance.

Tariffs only make a problem worse, it slows the economy down for contractors and installers that just want to work. Raising prices slows down growth and production.
Tariffs are not the answer.

[Mike90250]

Thanks for this.. very informative post. It really helps us a lot.

nonsense posts will get deleted.

[Mike90250]

Driven by envy, of no workplace/environmental restrictions, and not being able to compete fairly, on a level playing field.

[russ]

Driven by envy, of no workplace/environmental restrictions, and not being able to compete fairly, on a level playing field.

Low wages, no pollution controls, governmental assistance, funny currency - lots of problems.

Several places where I worked overseas would be shutdown in a day in the US or Europe - pollution heaven! If the environmental inspector is a nuisance a few bucks make him happy - usually very few bucks.

[tomas90]

Driven by envy, of no workplace/environmental restrictions, and not being able to compete fairly, on a level playing field.

But noone would like to have those conditions in the US right? You can't change what happens in other countries. US companies just have to make their customers clear what the price premium they have offers them in additional value, despite buying american (or German, or Japanese). If you have a look at those numbers and count the number of western world countries in the list you can basically see in a minute how grim the outlook for those companies is.

Trade restrictions are not the way to go. Offering better value, being innovative, creating new products is what has put countries like the US, Japan and Germany ahead for decades and hopefully will do so in the future as well.

[russ]

Until you have worked in countries around the world and seen what goes on you can not appreciate the difference.

Most steel mils in the developing world would be closed in a day or two in the US and Europe - pollution.

Something to get rid of? Throw it over the back fence.

I have seen people working on asbestos products that were covered from head to foot in the white dust - with the little kids crawling around in it.

Often the environmental inspectors are poorly paid and therefore very easy to make 'happy' so they can't bother to notice the problems.

[tomas90]

Until you have worked in countries around the world and seen what goes on you can not appreciate the difference.

Most steel mils in the developing world would be closed in a day or two in the US and Europe - pollution.

Something to get rid of? Throw it over the back fence.

I have seen people working on asbestos products that were covered from head to foot in the white dust - with the little kids crawling around in it.

Often the environmental inspectors are poorly paid and therefore very easy to make 'happy' so they can't bother to notice the problems.

I completely agree with you there. The situation is bad, and neither good good for the environment nor the people working in such poor conditions. But is this a reason to improse trade sanctions? I don't think so. You could of course think about a environment tax on products imported from countries with poor environmental record. But how would you calculate something like this?