China Takes the Green

Although China is already known for its industrial output, a bigger product is on the rise, solar panels and wind turbines. Friedman warned that "it" would be done to us, if we did not act first. Guess what? It is happening right now. Now that China is leading the frontier in green, is America going to sit back and relax? I hope not. America's chance at redemption is slipping away, and there will be consequences. I am not suggesting that China shouldn't manufacture clean energy products, but America is no longer the shining example that we had hoped it would be.

Now, Changsha and two adjacent cities are emerging as a center of clean energy manufacturing. They are churning out solar panels for the American and European markets, developing new equipment to manufacture the panels and branching into turbines that generate electricity from wind. By contrast, clean energy companies in the United States and Europe are struggling. Some have started cutting jobs and moving operations to China in ventures with local partners.

China’s expansion has been traumatic for American and European solar power manufacturers, and Western wind turbine makers are now bracing to compete with low-cost Chinese exports. This year, BP shut down its solar panel manufacturing in Frederick, Md., and in Spain, and laid off most of the employees while expanding a joint venture in China.

Not only will the American, clean energy companies suffer, but it is possible that after the last drop of oil is gone, America might become more reliant on China. Begging the question, can America settle its debt? There is no doubt that China's government is one of the main reasons for their success. American policies have hindered its clean energy production and lack of taxes has dwindled funding. The Chinese green company, Sunzone, could not have said it better:

“Who wins this clean energy race,” Mr. Zhao of Sunzone said, “really depends on how much support the government gives.”

So what are we, Americans as a whole, willing to do to turn the tables back in our favor?