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James P. Hoffa

James P. Hoffa

Posted: September 13, 2010 02:35 PM

Millions of traditional American jobs have moved to China, and now China is thwarting our efforts to create new, renewable energy jobs to replace them.

China has a million people working in its clean energy industry. It makes half the world's wind turbines, supplies half the world's hydropower projects and fabricates three-quarters of the world's compact fluorescent light bulbs.

Meanwhile, manufacturers of solar paneling and wind turbines are cutting jobs and closing factories in the United States.

China isn't beating us fair and square. China is breaking the trade rules that the rest of the world follows in order to dominate production of clean energy. It's killing our ability to create new jobs. And if it keeps up, China will replace our dependence on foreign oil with a dependence on foreign clean-energy technology.

Unfortunately, we haven't done much about it -- until recently. Our brothers and sisters at the United Steel Workers are prodding the government to take action against China. Last week they filed a 5,800-page petition asking the U.S. Trade Representative to restrain China from five sets of unfair policies and practices.

The steelworkers say the Chinese government has spent hundreds of billions of dollars in subsidized loans and cheap land deals to promote their clean-energy industry illegally.

China also breaks the rules by severely restricting the export of rare earth materials essential for renewable-energy technology. That forces foreign clean-energy manufacturers to move to China in order to get access to the rare earth.

Once there, China illegally requires foreign manufacturers to transfer their technology to Chinese partners. That means research and development paid for by U.S. taxpayers ends up in China, creating Chinese jobs.

It gets even worse. China sells its products overseas at artificially low prices. Every day, the Chinese government spends $1 billion a day on currency in order to make Chinese products more affordable to the rest of the world. Undervaluing the yuan makes U.S. exports more expensive -- and difficult to sell -- in China. That's why Americans bought $18 billion more from China than we sold to them last month.

This week, two congressional committees will hold hearings on China's currency manipulation. Other countries are likely to challenge China for undervaluing the yuan at upcoming meetings of the International Monetary Fund and the G-20 nations.

But talk is cheap and China hasn't shown much interest in backing down. It also has plenty of allies among multinationals like BP, who just shut down its solar panel manufacturing in Maryland and Spain, laying off most employees. Those jobs will go to China as BP and its partner enlarge their joint venture there.

Cheating works for China, but not for the American worker. Five years ago, China was making hardly any solar panels. Now it makes half the solar panels in the world. Two hundred fifty million Chinese take showers heated from solar panels on their roofs. In contrast, fewer than 1 million Americans now use solar panels to heat water.

President Obama has committed $80 billion for clean energy -- including generation of renewable energy sources, expanding manufacturing capacity and advancing vehicle and fuel technologies.

That is laudable. However, we must now get our trade policy straightened out so that the $80 billion will create jobs right here in the United States and not in China. The U.S. government should bring this case before the World Trade Organization. American workers deserve no less.

 

Follow James P. Hoffa on Twitter: www.twitter.com/TeamsterPower

 
 
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03:09 AM on 09/14/2010
Where i m sitting you can see a panorama of buildings with neat lines of solar water heaters, this is a large centre of manufacturing in Jiangxi ,China.New solar panel manufacturers are coming here everyweek (amongst other manufacturing from light planes to porcelain).Indian,Australian,Sri lankan,Congolese,Kazakstani...even a few Americans.The bars/hotels are full of entrepreneurs from all over the world,a buzz about green energy and it s future.The partnership rule is a long standing Chinese prerequisite and there are plenty of takers(Indian companies especially have few reservations about sharing their expertise) and most are ethically conscious(their own economic agenda) that to buy from/set up in China is a move to shift the wealth away from America,the long predicted shift of global wealth distribution .American products in Chinese stores are novelty items for the noveau rich,in fact to buy American is probably viewed now as an unconscionable waste of resources against their own values(that s a lesson).Last time i looked this was a socialist market economy they subsidize green energy like other areas of their industry.The US economy outside is own shores is slowly becoming a avant garde theatre without an audience, China and it s growing hegemon in the developing world are not going to start dancing to the American tune...especially now ,that s policy.The failure of globalisation is something the British Empire suffered in the end, and the US elite dropped the rugby ball in the game they took over.
02:25 AM on 09/14/2010
One significant development in the "trade" is that the Chinese are coming - this time with their project financing. Everyone is waiting for that first major project to break, showing the Chinese funds that they can actually get 6-8% steady returns for 15, 20 years with relatively low risk (with big utilities paying the PPAs), and the expectation is that thereafter there could be as much as $10 Billion a year coming into the market chasing solar and wind projects.

All bets are off if the union-pushed protectionism wins.
08:10 PM on 09/13/2010
All the protectionists are crawling out of the woodworks, all are narrow special interests to support an assault on the Hill. WHO's going to speak for the more diffused interest of the 300,000,000 consumers?
12:17 AM on 09/14/2010
I am not protectionist and I doubt your claim of speaking for 3,00,000,000. I don't believe in massive subsidies awarded to the "Chosen Few" large politically connected corporate interests. One project in southern California has $400 M equity and received a $600 M GRANT and a $1 billion dollar gov low interest loan for a project the California Energy Commission said doesn't meet state standards, will not comply will county laws and uses unreliable technology but will be approved anyway. I feel sorry for anyone that supports the above.
01:10 AM on 09/14/2010
Don't know what project you are referring to, but if it is not CEC compliant (e.g., does not use CEC on list hardware), it would not qualify for TGP (30% tax grant). It does not sound like an import program either - as most of the imported green products comply - if only for the simple reason that European compliance is more demanding, and Europe historically had more generous govt. subsidies, so these international hardware tend to comply with European standards first - which perforce will make it easy to comply with the U.S. standards thereafter. .
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01:37 AM on 09/14/2010
thanks, i'll speak for the 300,000,000. what we want is to clean, democratize and decentralize the grid. we want our intact ecosystems left alone, and we want 100% of government incentives targeting efficiency upgrades and clean power generation WITHIN THE BUILT ENVIRONMENT. WE want to own the solar panels, not Chevron, and WE want to be fairly paid, using feed in tariffs, for producing more clean power than we consume.

this system is working incredibly well all over the world (notably Europe). France broke the Grid Parity barrier this year, making FIT-supported renewables cheaper than fossil fuels, and THE MONEY WENT TO PEOPLE, NOT BIG ENERGY. Property values shoot up, a huge number of LOCAL jobs are created, Main Street economic stimulus (not offshoring of Big Energy profits), and incentives to do the right thing are all part of the plan.

This is a cross-partisan solution that does not re-empower Big Energy Robber Barons, does not raise utility prices as much as Big Solar and Big Wind, does not cost taxpayers anything, and doesn't rely on the corrupt, insane Cap and Trade mechanisms to reduce GHG emissions. it's a total win!

So, the people have spoken! We want European-style feed in tariffs and PACE style loans to support a renewable revolution within the built environment that we will owns. thanks!
02:18 AM on 09/14/2010
All very noble goals. But if the unions have their way, solar panel prices will go back UP, and you'd be going further AWAY from parity. It was the availability of major cost down (from $7/Wp sliding down to $1.50/Wp in a few short years) that ENABLED reaching parity in Europe - their higher cost structure also helps.
03:28 PM on 09/15/2010
But are you willing to support the mines that provide the raw material feeds. Accept the refiner and processors of the materials, accept the new transmission corridors and innevitable species impacts from them.

Nimby environmentalists are doing as much to harm green tech as they can in this nation. Building this technology isn't 100% clean, the resources for it have impacts.

Supplying homeowners from the built environment I can see being integrated. The large industrial power users will need grid power, our water works grid power etc... And unless we have a strong industry working to our environmental and labor standards those jobs will be overseas.

In the pacific west the best renewable energy solution is by far geothermal. It will have impacts, it can't be integrated on rooftops.
06:53 PM on 09/13/2010
All the large utility size solar plants planned for construction in the desert are subsidiaries of foreign corporations. Does anyone ever wonder where all those billions went?
08:06 PM on 09/13/2010
What companies are you thinking of? First Solar (CdTe thin film solar, first to get below $1/Wp) is American. The panels are made overseas (Philippines or Malaysia), and they just announced the world's largest (10 GW?) solar generation project in China (Inner Mongolia) not that long ago. Protectionist moves are just going to beget same, and kill American companies' chances overseas.
12:22 AM on 09/14/2010
Large utility size solar, NOT Photo Voltaic. But there is one German PV company masquerading as American that I know of.
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01:31 AM on 09/14/2010
Bright Source is Israeli, funded in large part by Chevron, BP, Morgan Stanley and StatOil (Norwegian oil company doing the tar sands extraction in Canada). Oh, and RFK Jr. is spokesmodel and investor (via VantagePoint Partners).

Abengoa is Spanish.

Solar Millennium is German (partnered with Chevron).

Cogentrix is Goldman Sachs

Notice there is nobody on a white horse wearing a white hat on that list, and these boondoggles create almost no jobs, don't create local economic benefits, emit tons of GHGs and hijack ratepayers who otherwise could put solar on their roofs with this money. It's "kill the wilderness for money" as usual.
05:54 PM on 09/13/2010
China has violated fair trade rules and I think the United States needs to take a stand. Not only for clean energy but just for all products in general. I feel this is a bipartisan issue that should be a no brainer. China is not playing fair. This is not a free trade issue, this is fair trade issue. Capitolists should be angry by this. Unionist should be angered by this. Americans should be angered by this.
The Green jobs are only a small part. China is stealing. I think that if the United States takes a stand the rest of the world will follow. China will have to back down.
08:08 PM on 09/13/2010
If anybody violated trade rules, the WTO has procedures for dispute resolution. Unilateral trade action of the protectiionist type simply jacks up prices for consumers (e.g., tire prices on which tariffs were imposed last year went up 20-25%, and AMERICAN CONSUMERS are paying for that).