So China says ““This investigation will … be harmful to the development of Sino-US new-energy cooperation”. What is that cooperation? The U.S. sends them money, and they send back their finished products? Just like it is already in most other industries? I don’t think that’s the kind of “cooperation” that is in U.S. interests.

Therefore one must ask, why is it believed that U.S. solar energy firms compete can’t with the Chinese?

Surely, there are numerous factors.

– Subsidies for domestic solar panel manufacturers –
Weaken the competitive edge for these firms; where’s the incentive become more efficient or innovate when your paycheck is ensured?

– Economies of Scale – The Chinese have invested billions into manufacturing these products.

e.g. There is a factory which required $1 million to build and a factory which required $100 million dollars to build. Assuming they are both producing the same product and using similar processes… Which factory would produce the same good at a cheaper unit price?

– Competition drives innovation – Subsidies, like labor unions erode competition and therefore prevent innovation.

– Big Oil and Coal Lobbyists – If it weren’t for these people I believe we would have witnessed a much broader adoption of renewable energy technologies a decade ago.

– Some energy giants still talk about “Oil Sands” as if it’s a reliable source of energy in the future. These people are sponsoring massive advertising campaigns disseminating misinformation to millions of unfamiliar Americans who actually believe what they see on television.

In my opinion, the U.S. government, corporate lobbyists and greed have ultimately deterred the adoption of renewable energies and have forced U.S. solar firms into a position where they are unable to compete.