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Obama Admin Takes Aim at China’s Renewable-Energy Subsidies
Last week, in a move that pits American labor against China's green-technology industry, the Obama administration filed a complaint with the World Trade Organization over China's wind-power subsidies.
The U.S. move challenges China's rapid growth in the renewable-energy market, and also throws the weight of the administration behind the unions, elevating concern about Chinese competition to the level of official U.S. policy.
The complaint falls on the heels of a 5,800-page filing made in September by the United Steelworkers against China, arguing that its renewable-energy subsidies violate international trade regulations. According to that filing, China defied trade agreements by providing land grants and low-interest loans in order to produce clean technology at artificially low prices.
Both complaints ignore the fact that energy industries all over the world benefit from government subsidies. In the U.S. and Europe, the nuclear and fossil-fuel industries get massive public subsidies. And as a percentage of GDP, Spain and the U.K. pump funding at levels similar to China's into green subsidies.
China sharply rejects allegations that its rapidly growing solar-panel and wind-turbine manufacturing efforts defy WTO trade regulations.
Beijing dismisses the attacks as another example of China-bashing, which rose to new heights in the U.S. during the recent 2010 midterm elections, when no fewer than 29 congressional and gubernatorial candidates pushed anti-China messages in campaign ads. In October, The Wall Street Journal reported that "China is emerging as a bogeyman this campaign season, with candidates across the American political spectrum seizing on anxieties about the country's growing economic might to pummel each other on trade, outsourcing and the deficit."
The Obama administration appears to be taking a cue from this surge of protectionist scapegoating.
China, for its part, feels it is being presented with a damned-if-you-do-and-damned-if-you-don't set of options. If the country invests in clean technology, U.S. officials claim China is engaging in "unfair" trade practices. If it does not, U.S. lawmakers threaten to slap a high-carbon tariff on Chinese imports. It's a no-win situation.
China is actually doing the world a favor. Its renewable-energy subsidies, which have made it a leading producer of wind and solar technology, are one of the most encouraging signs of progress in the global fight against climate change. China is currently the only country producing green technology at a scale that could dramatically bring down the price of goods like solar panels and wind turbines, making them affordable for both the developed and developing world. These advances could not have been brought about without government subsidies.
China‘s leaders have also committed to ambitious carbon-reducing policies. The country is aiming to cut its greenhouse gas emissions per unit of GDP by 40 to 45 percent from 2005 levels by 2020. And it is committed to deriving at least 15 percent of its energy from renewable sources by 2020.
China is now the world's largest emitter of greenhouse gases, but it still ranks far below the U.S. in terms of per capita emissions and historical emissions. And almost one-quarter of China's emissions come from products that are made for export. To the extent the country becomes a major exporter of wind turbines, solar panels, fuel cells, and electric vehicles -- all of which are energy-intensive to produce -- it will be taking on an emissions burden from other countries.
If the U.S. wants to get serious about renewable energy, it should ramp up its own subsidies for clean technology, not quibble over China's.
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22 Comments so far
Show All"If the U.S. wants to get serious about renewable energy, it should ramp up its own subsidies for clean technology, not quibble over China's."
The US is indeed serious about renewable energy, all right. The US is absolutely determined to prevent its development.
The difference between the US and China regarding this issue is the relative influence of the fossil-fuels industries in each country.
q
The Obama administration is just grandstanding in front of constituencies it wishes to impress--the unions, for example. There is no hope China will stop subsidizing green energy just as there is no hope the US will stop subsidizing the fossil fuel industry. It is all Kabuki theater--and everyone knows it (except the majority of Americans, of course).
No different than the UAW killing Al Gore's revenue neutral btu tax. These people need to learn about cutting off one's nose to spite one's face. They dig their own graves with their own shovels.
OMG Does this OilyBomber stay up all night dreaming about ways to make a worse world?
Palin is not smart enough to do worse.
Yea right dump USA subsidized corn on Mexico and subsidized cotton on Africa ruin their small farmers and have multinationals buy the land for GMO crops or ethanol.
Give me 100% subsidized renewables!
This guy has no bottom to his corruptness.
And now he's a friend to Unions, what happened to that key legislation he promised the Unions?
He he running as a Caligua look alike?
Typical. It might play well to his "Constituency" at home but the rest of the world easily sees through the hypocrisy.
The US leaders and "political thinkers" and "strategists" are totally outclassed and if a Bush or an Obama the best they can offer the Decline will be all the more rapid.
Let me see if I have this right, the Obama Administration is upset at China for subsidizing green energy while the U.S. government gives Big OIL, COAL & GAS $billions in subsidies, tax breaks etc?? I'm just shocked......LOL
And don't forget the huge tax credits to the biofuel (ethanol) industry.
Boo hoo! It has only been two weeks since you signed the tax bill containing ethanol subsidies ($6 billion for one year) and now you are complaining about China subsidizing energy, a cleaner energy (wind) at that. (BTW, Brazil would probably be the country most affected by our ethanol subsidies.)
In fact, Brazil is about to file a WTO complaint against the US on the issue of ethanol subsidies.
If the Steelworkers were smart, they'd be pushing for renewable energy subsidies, at the expense of those for fossil fuel, in America.
RMG has it just right: America is global-warming public enemy number one, and our leaders see absolutely no irony in the fact that we subsidize the problem while we complain about China's cure.
Welcome to the rabbit-hole.
Being a member of a union does not mean the worker at the bottom of the heap has any say whatsoever in any of the pronouncements of the laborskates at the top.
Why don't they just make it a federal crime to think of new ways to do old things and get it the hell over with? Seriously, let's all have money and be DEAD, HOORAY!!!
If a politician makes no serious promise and commitment to assistance in renewable technology subsidization, assume the worst. If we are going to stop Obama and other pols from wasting our tax dollars chasing after countries going away from Big Oil, then we must unite, neighbor by neighbor, town by town, state by state, and nationally to promote the change we can believe in. That is one of the fundamental lessons we should be learning from this administration. Are we ready to unite and fight or stay fragmented and let Washington get away with their cold wars against other nations?
Politicians talk of a "vision" for the future. Where is the vision and what does it look like? Can the USA ***EVER*** catch up on such technologies with policies such as these? Technological and manufacturing excellence doesn't happen overnight nor without a sustained effort and the right climate. I think the blame **must** be shared by the public for remaining distracted by trivialities and to look out only for their own selfish interests.
>>The U.S. move challenges China's rapid growth in the renewable-energy market, and also throws the weight of the administration behind the unions, elevating concern about Chinese competition to the level of official U.S. policy.<<
More proof that US industries are losing the ability (if they ever had it) to compete on a **truly** level-playing field. Somewhat true for a few western countries in general. The "traditional" advantages that came about due to conquest, having a head start, being victorious in a war, ability to control foreign markets, etc., are wearing thin.
In a nutshell, Who's the good guy and who's the bad guy in the next war?
"may you live in interesting times"
When we realize there are NO good guys OR bad guys, there will be no more wars.
What a bunch of sore losers.
A set of biff-heads and bruisers.
Fossil fuel spruikers and pushers.
Climate change denying cry-babies.
So this is the best of private enterprise,
Meeting lifes losses with legal appeal.
When the facts change, so do the wise.
Make actions fit challenges from what is real.
Governments subsidies are the hand on the tiller,
The US funds all go to its military killer.
While everyone complains about the waste,
No one expects change to occur in haste.
The wisest choice any group can make,
Is to use renewable energy thats free
Instead of the fossil fuels mistake,
Not paying the climate change subsidy.
how dare any government spend money to the benefit of its people and the environment!
Unbelievable!
On second thought...who are the United Steelworkers these days? They make weapons and cars, both heavily subsidized by U.S. taxpayers.
Probably, Germany is the largest exporter of wind turbines. Has this union filed a complaint against Germany?
The hypocrisy of the Obama administration here is sickening.
Meanwhile, high-tech green energy systems are competing with cell phones for the use of limited "rare earth" metals, the supply of which is now dominated by China. Americans would prefer to babble endlessly on cell phones instead of investing in green technology.
Babble on, America. Babble on.
-30-
Not again. The “Chinese solar stocks” will be getting another kicking. The reason we have affordable solar panels today is because the Chinese have managed to drive retail prices down to $2.00 per watt. Prices low enough to allow people in third world countries to go electric without a grid. Cell phones without a grid. Today I have a grid tied feed in solar array which supplies all of my electricity thanks to reasonably priced Chinese panels.
If the US is serious about competing in renewable, start by cultivating a green energy culture like they have done in Germany, Spain, Denmark and Sweden and now of all places Ontario Canada. Provide the right incentives and start competing. Cheap labour is not the issue here as solar panel manufacturing can be fully automated.
Time to stop the China bashing. When they adopted a single child policy more than thirty years ago we criticized them for it. Today we should thank them for it. Perhaps we should do the same here as the last time I looked we produce 20 tons of CO2 compared to 5 for the average Chinese. China is the largest producer of solar panels and wind turbines and I expect within the next two years the largest manufacturer of electric vehicles.
Perhaps Obama should pick on Apple and impose restrictions on importing our beloved Ipads, Iphones and all of the rest of the stuff made in China we can’t seem to do without.
"If the US is serious about competing in renewable..."
Unfortunately, they're not.
You're referring to the largest military and economy (if you just count the GDP) of any country in the history of the world all brought to you by the exploitation of fossil-fuel.
As my friend has been saying: America is so 1910!
Common Dreamers, If wishes could help, Happy New Year!
Hang in There...
"China takes aim at Obama's oil ($15b), nuclear and coal subsidies"