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US Union can only Complain Against Chinese Green Protectionism even as China overtakes USA in all Aspects of Cleantech Investment

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US Steelworkers Union has filed a case in the US Trade Representatives Office against illegal Chinese protectionist policies in the Green Sector.The US Administration will examine the Petition for 45 Days before taking up any Action.The Case  has revealed 5 major areas of protectionist and predatory practice by China to support its Green Industry.There is no doubt that China supports is Green Energy Companies heavily through a variety of implicit and explicit subsidies.Many of these companies would have become bankrupt if not for the cheap capital and grants given to these companies.The Chinese Wind Sector’s Exponential Growth is a direct results of the domestic content requirements and heavy promotion by Chinese provincial government.Massive Credit lines running into Billions of Dollars given to Solar Companies like Suntech,Trina and Yingli are testament to the support.Most of the Chinese tenders go to domestic firms only due to convoluted rules.EU and Japan have recently strongly protested against Chinese discrimination against their companies.

China Clean-Energy Aid to Draw Complaint by U.S. Steelworkers – Bloomberg

The United Steelworkers union said it will file a trade complaint with the U.S. government against renewable-energy products from China, urging investigation of subsidies and preferences given by that nation.The case “reveals five major areas of protectionist and predatory practices utilized by the Chinese to develop their green sector at the expense of production and job creation here in the U.S.,” the American union said in a statement, indicating specifics will be provided later today.

The complaint that China is doing too much to help its companies expand their clean-energy sales contrasts with international efforts to encourage renewable energy and reduce greenhouse-gas emissions in order to curb global warming. Nations including the U.S. and China plan to meet in Cancun. Mexico, at the end of November to renew climate-change talks. Legislation to limit carbon emissions and set requirements for the use of renewable energy have stalled in the U.S. Senate.

US Union hopes to Extract More Concessions rather than any Major Change

However this Petition will not lead to any major changes or action.US has been too chicken to even take up the currency manipulation issue with China.Token protests and measures are the only things that have happened in the past.The US Union hopes to wrangle out more concessions from Chinese firms through this petition.A-Power a Chinese Wind Firm had given the steelmaking contracts to US domestic firms to allow the smooth political passage of their multi billion wind farm in Texas.The US Steelworkers Union hopes to keep the pressure on through this Trade Complaint

Further Proof  of Chinese Leadership in Green Industry

China has overtaken the US and EU in Green Industry Leadership.US Utilities like Duke Energy have openly acknowledged Chinese primacy in this regard .Investment in the Renewable Energy Sector in China at $38 billion in 2009 was more than double that in the USA.Companies in the US are outsourcing Green Jobs to Mexico and China due to high costs and lack of Government support.2010 should see this gap widen further with Chinese plans to spend almost $760 Billion in Green Investments in the next decade.The Ernst&Young Ranking of the Most Preferred Green Investment Countries has further bolstered the case of Chinese Leadership.China has been ranked ahead of the US with German,India and Italy forming the top 5.Note US dithering over Climate Change Legislation has already made big investor like Deutsche Bank abandon US Green Investments.Expect India to leapfrog the US in the near future as well.

China Beats U.S. on Renewable-Energy Investor Ranking (Update2) – Bloomberg

China overtook the U.S. to lead a quarterly index of the most attractive countries for renewable energy projects for the first time, according to a list compiled by the global accounting firm Ernst & Young.After sharing the lead with the U.S. in the first quarter, China moved ahead of the world’s largest economy to rank as the most appealing nation for investing in wind and solar power projects, according to the report released today. The move follows the failure of U.S. Congress to pass legislation that would have required utilities to use clean energy.

In the second quarter of 2010, China attracted $11.5 billion in asset-financing for clean technologies, more than Europe and the U.S. combined, according to Bloomberg New Energy Finance.

China also topped Ernst & Young’s attractiveness index for investments in wind power. The country last year had three turbine makers in the top 10 worldwide in terms of sales by megawatts, according to the Danish researcher BTM Consult APS. Those companies are Xinjiang Goldwind Science & Technology Co., Dongfang Electric Corp. and Sinovel Wind Co.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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