Cold Trade Wars Going Hot?
The dispute created by the Obama administration’s challenge to China over subsidies given to its renewable energy industries can be avoided with clear rules.
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“The US challenge to China comes out of fear that Chinese companies might have an unfair head start in exporting low-cost electric-car, solar, or wind technologies, choking off the ability for American companies to grow. China does spend about $9 billion a month on clean energy, according to Mr. Chu, and many experts say it will dominate the wind and solar markets in a few years. To be sure, American companies remain primary innovators in solar and wind, but that edge can be lost if Chinese companies gain the latest technology and then rely on the advantages of cheap loans, land, and labor arranged by the government. Beijing has a policy of curbing foreign competition and copying foreign patents.”
