have the currency dispute between the two economic superpowers, U.S. and China, the tempers calmed. The submission of an official U.S. currency report was last moved. Thus, the U.S. government was out of the embarrassment, the Middle Kingdom incrimination, to manipulate its currency. In addition, China does revalue the yuan is now slightly faster than before.
now threatens trade relations between the two countries but new hardship - and this time the part of new environmental technology. The U.S. Commerce Department recently agreed to a formal investigation to clarify whether China has subsidized its alternative energy sector unjustifiably strong. Behind the study is the American steel workers' union, the massive imports of cheap Chinese solar panels, wind turbines and rechargeable batteries have long been a thorn in the eye. American unions and even many members of Congress demand across party lines that the U.S. government is to tear China for its alleged unfair trade practices before the WTO.
In fact, were the Chinese solar companies in recent years, remarkably successful. Thanks to huge production capacity and lower unit labor costs last they rolled more and more on the world market. Without generous environment and support measures by the government of this technological and economic effort would not have been possible. Only recently state-owned Chinese banks several solar companies have again been sufficient loans in billions of scope, to enable their further expansion.
In the U.S., the Chinese solar giant increase its market share continuously, which regurgitates the American competitors naturally bitter. In addition, however, should not be forgotten that the market for solar products in almost every country in the world is highly regulated by the state. Without extensive feed-in tariffs, development loans from state banks and location subsidies, most large and small installations would not exist. In addition often come from solar power companies in technological cooperation with government-related research institutes and universities to quantify the economic contribution difficult is.
China has been relatively little on solar systems in their own country set. Instead, Beijing has invested heavily in building a powerful solar industry that is increasingly beset by foreign competition. China's solar giant, however, were built up by investors in the West. Almost all major Chinese solar companies have gone in the U.S. (and not in Hong Kong or Shanghai) to the stock exchange. Accordingly, the profits come and rate spreads only benefit the U.S. and European investors, while the Chinese are even out here before.
State subsidies and state intervention in the market place are many economists Abomination. In China, such measures are still relatively common. Finally, China's economy still distinguishes strong from ours - and this is a fact with which the West must learn to live. The Middle Kingdom will not overturn its genuine economic order, just go to trade disputes from the road. If are not going in the future both sides together, more conflicts are inevitable.
addition, we should not be interpreted in terms of state intervention too fast with the finger at others. The subsidies, trade restrictions and support programs in the Western economic blocs are legion, and have caused many disputes - including between the local trading partners themselves have also used the governments in the U.S. and Europe in the financial crisis trillion euros to keep the moribund banks and car companies alive. These are also massive state intervention that lead to market distortion and could be considered unfair advantage taking.
China has been watching all these heads of state intervention in the West without a murmur. The Middle Kingdom moved it instead to pump their money in emerging industries. Perhaps it is now up to us to accept that an Asian country with a different economic system, the right to operate its own technology policy.
Source: Reuters
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