The NYT has an update on the US – Chinese solar panel dispute.
While green technologies are key to reducing the energy consumption in the US, sadly the focus is only on rules of origin: who produces the green technology, not how much it can help us reduce carbon emissions. The US would like to keep cheap Chinese solar cells out. After a first victory that imposed huge subsidies for US producers and huge tariffs (24%-36%) on Chinese solar imports, the Chinese turned around and started to source key components from Taiwan. Since only Chinese solar cells had been subject to the US tariff, the new cheap "Taiwanese" cells soon flooded the US market. Much to the chegrin on US solar cell producers who wanted to maintain higher prices in the domestic market. This "loophole" is now to be closed by having high tariffs imposed on any solar modules that contain Chineses parts. The winners: "Solar World Industries of Amercia" (which is actually a subsidiary of a German company!) , the loosers (as usual): consumers and sadly also now the environment.
In Europe the threat of a 67% tariff resulted in a negotiated price floor that Chinese companies agreed to and voluntary export restraints to end the "oversupply" of solar cells.
