All praise from here for President Obama's courageous decision Friday to proceed with an investigation of China's opportunistic and illegal trade practices in the clean energy sector. Those of us dedicated to supporting U.S. workers, U.S. jobs and U.S. manufacturing owe him an enormous debt of gratitude.
The Administration deserves a tremendous amount of credit for considering this case on its merits, rather than letting some overarching philosophy dictate the outcome. Demonstrating a willingness to challenge China's cheating could make a huge difference for American workers and businesses in the clean energy manufacturing sector. And if the Administration's efforts with China are successful, the ultimate result will be more American jobs.
Friday's decision, announced by United States Trade Representative Ron Kirk, was in response to a United Steelworkers (USW) Section 301 unfair trade complaint against China. In his announcement, Kirk said, "We take the USW's claims very seriously, and we are vigorously investigating them." He said his office would use the next 90 days - the time period called for under World Trade Organization (WTO) laws - to investigate the practices detailed in the USW petition.
The Steelworkers - one of our stakeholders - stepped up to the plate while many others have been reluctant to do so in the face of Chinese pressure. Here was the union's reaction Friday.
This week's trade numbers sure helped drive home the fact of the absurdity of our trading relationship with China: a record-breaking $28 billion trade deficit with China driving a total August deficit of $46.3 billion.
China did not get to this superior position by playing on a level playing field, and the USW's petition, a 5,800 page report, details the more than 80 Chinese laws, regulations and practices that are designed to crush clean energy manufacturing and other green technology in the U.S. As the August numbers help show, China's plan is working. China has set prices to undercut the U.S. and other competitors, set discriminatory technology laws and regulations, demanded that foreign companies transfer valuable technology, and has provided massive subsidies to Chinese companies, causing serious damage to U.S. interests.
The numbers also help put in perspective how futile U.S. clean energy plans and proposals will be unless China adheres to international trade laws.
The Brookings Institution, American Enterprise Institute and the Breakthrough Institute issued a joint report this week calling on the government to invest $25 billion a year in "military procurement, R&D, and a new network of university-private sector innovation hubs to create an energy revolution."
That's all fine, but just comparing the numbers - a trade deficit of $28 billion a month versus a proposed U.S. investment of $25 billion a year - shows the futility of the effort until the U.S. regains balance in its trading relationship with China.
As I wrote in November 2009, "American voters have a visceral response to jobs shipped overseas, a trend that Obama said he would address as a candidate. Less than a year out from the mid-term elections, this looms as a major political problem, as well as an economic one."
That mid-term election is a lot closer now and until today the fundamentals had not changed. The president's decision to stand up against China's highly aggressive and illegal trade practices is a huge win for American workers, and he deserves our hearty thanks.
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"It also said the U.S. has more than 2,300 energy subsidy-related items of its own, including clean energy. "
The Chinese could bring the US before the World Trade Organization for 2,300 counts of energy subsidy. If the WTO ruled in its favor, China and the WORLD could impose penalty sanctions on US exports unless US halted the alleged subsidies.
Russia has been exporting China high tech military purpose technology for years, but now China has learned their technology Russia technology exports have plummeted.
http://www.afcea.org/signal/articles/templates/SIGNAL_Article_Template.asp?articleid=1624&zoneid=7
China, China Yuan, China subsidies in clean tech. are just red herrings, convenient scapegoats. The real problem is US political gridlocked: no ideas [besides debasing the dollar even further compare to all major currencies (and you say China is artificially making it's currency cheap :)], no directions, no actions.
US and Russia both stole military technology from Germany and each other. What's new?
Ask any economist, and they will tell you, strengthening the Chinese Yuan will have very little effect on American jobs. Very few people in the USA are willing to be employed in the kinds of the jobs in China: textile, clothing, low-tech manufacturing, etc. What will happen if the Yuan does strengthen substantially is the jobs will go to countries like Vietnam, Bangladesh, India, and Americans will only end up paying more for consumer good.
Let's not forget that the Yuan has appreciated almost 20% since 2005 (http://goo.gl/uJmZ). Another 20-40% appreciation right at this minute like what the US senator are pushing for? Don't expect China to respond kindly. The irresponsible party seems to the the USA administration. Bernanke have debased the dollar to record highs against most major currencies, at the same breath talk about the necessity of another QE. With what? Borrowed money from China?
As for clean technology. Name me one USA clean tech. company (from ethanol to solar) that is not subsidized by the US government. The reason the Chinese are winning in clean tech. is because they have made it top priority. Time to stop whining if your priorities are else where.
How much in subsidies?? $218 Billion for green technology. How is that bearable??!! Who can compete with that??!! That's totally unfair.
Push comes to shove, no doubt Chicoms will be pressed into investigating the financial industry subsidies - $12.8 Trillion (according to Bloomberg). Onlly a measly 60 times that of the alleged Chinese green subsidies.
WHO in the world can compete with $12.8 Trillion?? That is only more than ALL of Chinese govt. subsidies since 5,000 years ago.
BTW, just about ANYBODY can compete with $218 Billion - that's like a rounding error as far as the U.S. budget is concerned. It is a question of priorities. War are more important to Washington than jobs.
$12.8 Trillion is 60 times the $216 Billion claimed for the green energy subsidies by China. WTO authorization for legal retaliation would be commensurate with the size of the illegal subsidies, so the risk exposure to the U.S. of pushing the WTO remedies, would also be 60 times as high.