#solarpanels #Chinesesolar #dumping #governmentinvestigation
Do you think what the Chinese are doing with solar panels is clearly dumping? 🌞 Let’s dive into this controversial topic and share our thoughts!
Here are some points to consider:
– Some argue that if a country heavily subsidizes an industry, leading to lower prices and market domination, it could be deemed as dumping.
– Others believe that investing in research and development to innovate and produce goods more efficiently is just good business strategy, not dumping.
– It’s important to distinguish between unfair trade practices and legitimate competition in the global market.
Possible solution:
– Encourage fair trade practices through international agreements and regulations.
– Promote innovation and investment in sustainable energy sources to level the playing field for all countries.
What do you think? Share your perspective in the comments below! Let’s have a constructive discussion on this complex issue. 💬 #fairtrade #innovation #sustainableenergy
Dumping is a specific term of art in international trade. It does not mean what you are suggesting.
You should look in GATT and WTO trade rules for appropriate government subsidies over illegal trade practices.
Dumping is, in general, a situation of international price discrimination, where the price of a product when sold in the importing country is less than the price of that product in the market of the exporting country.
I don’t believe that China is selling solar panels in foreign markets for less than than in China. There may be specific solar panel products that are being dumped, but on the whole it is not happening.
If it is clear that dumping is occurring then the EU or US can apply countervailing duties to Chinese imports to rectify the price discrepancy under WTO rules.
Dumping as defined in **GATT 1994** and used by the WTO generally means “the sale of a product in the territory of an importing country at less than the price for which that product is sold in domestic market of the exporting country”. So China subsidizing R&D (and other activities, as Chinese subsidies are a lot more complex than simply financing research) does not automatically mean that it engages in dumping.
Whether Chinese subsidies are “okay” or not is ultimately a very political question, unless such a claim is brought before the WTO dispute settlement body (the institution in charge of determining this under international trade law) and they are decided to have an adverse effect on other economies.