The United States wants to persuade China to dial back its green energy industrial strategy as the Biden administration subsidizes its own supply chain.
Yellen’s basically saying the Chinese are selling green energy products below cost, aka “dumping” without actually using the word, which would be an accusation of unethical conduct.
Foreign manufacturers, especially those with nation-state support, do “dumping” to grab market share and destroy local competition. The foreign companies eat the initial losses, but then they can raise prices after local companies are destroyed, acquired, or hopelessly behind and competition has been effectively eliminated.
But that’s not what’s actually happening, and even if it was, you just need to subsidise those industries in your own country to account for that, and everyone gets more green energy.
Yellen’s basically saying the Chinese are selling green energy products below cost, aka “dumping” without actually using the word, which would be an accusation of unethical conduct.
Foreign manufacturers, especially those with nation-state support, do “dumping” to grab market share and destroy local competition. The foreign companies eat the initial losses, but then they can raise prices after local companies are destroyed, acquired, or hopelessly behind and competition has been effectively eliminated.
But that’s not what’s actually happening, and even if it was, you just need to subsidise those industries in your own country to account for that, and everyone gets more green energy.
But what if we subsidize oil instead?