Chinese Solar Firm Revises Price Remark

[Coventina]

Source: New York Times

HONG KONG — The chief executive of the biggest Chinese solar panel maker on Wednesday reversed a statement that his company was selling below marginal cost in the United States, while a leading solar company in Germany has begun calling for a “Buy European” rule.

Shi Zhengrong, the chief executive and founder of Suntech Power Holdings, said in a telephone call Wednesday that he had misunderstood the question when he said twice in a recent interview that his company was selling panels in the United States below the marginal cost of producing each additional unit.

Dr. Shi’s revised comments came a day after Frank H. Asbeck, chief executive of SolarWorld in Germany, said that Europe should institute a “Buy European” policy for solar panels used in public projects. Mr. Asbeck pointed to the “Buy American” provision for construction projects in the United States supported by money from the stimulus legislation.

The actions of the two companies highlighted the increasing tension over a crucial energy industry. Western governments are mandating the use of more renewable energy but face a dilemma over whether to encourage the purchase of low-cost imports from China or often higher-cost products made at home.



Read more: http://www.nytimes.com/2009/08/27/business/energy-environment/27panel.html

[dugaresa]

1. and to think people thought that green energy would be a way to boost the US economy

but if the Chinese put a cheaper solar panel on the market it won't help boost any kind of manufacturing here.

[formercia]

3. That's the whole point of the exercise.

Control the market, then jack up the prices.

[WriteDown]

4. Yep, its classic "dumping." nt

[harmonicon]

6. it would greatly boost the economy, if not through manufacturing

Manufacturing isn't the main thing that would help the economy if/when installing a solar infrastructure. This stuff has to be installed and maintained be people in the US. Also, it's not as if you just throw solar panels on the roof and immediately get electricity - there are many other components required for the infrastructure. Righting off the economic benefits of green energy just because of foreign manufacture of components is a serious error. It's a canard thrown out by the right-wing to keep money pouring into fossil fuels.

[Joanne98]

2. OOPS

[Romulox]

5. "Dumping" should be allowed in a so-called "Free Market".

Why not? It's a rational economic decision spurred by competition.