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Green War between USA and China escalates with acceptance of 301 Filing

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The Rise of American Protectionism has its chief enemy in the shape of China.Increasing unemployment and slow economic growth make Currency Wars seem  inevitable in the face of shrinking global demand and export loving countries.However Green Wars are something totally new.Clean Technology leadership has been slipping to China,as USA dithers and bickers on climate legislation and energy laws.China has been strategically pumping huge amounts of cash into the new age Green Industries.Other countries like South Korea,Singapore,Malaysia,Japan,Germany,Spain are also making a major push into the Renewable Energy Industry.USA despite its technology leadership has seen Green Jobs melting away towards China and Mexico.With American Public  Sentiment turning heavily against China in recent times,the US Congress and Administration have been pressurizing China on multiple fronts.The Massive Growth in USA Trade Deficit mainly with China has not helped.Even Europe and Japan are also worried about growing Chinese discrimination against their domestic companies.

US Steelworkers Union filed a Trade Complaint against China over its predatory practices in Green Sectors recently listing numerous infringements.While it was not thought of as a serious complaint because all Green Sectors have an element of Subsidy from Governments.This was seen as more of a tactical maneuver to gain more concessions from Chinese Green Investors in the USA like the A-Power  deal with USW to buy USA made Steel for its Wind Turbine Plant in the USA.However what has been surprising is the alacrity with which the USA administration has accepted the 301 Filing.Now the USA Government Apparatus will investigate the claims and file punitive duties and penalties on Chinese made Green Products imported into the US.This has already resulted in a major stock sell-off in Chinese Solar Stocks which were enjoying a great rally.Note this Green War is part of a general Trade Cold War between the USA and China.This threatens to derail the feeble global economic recovery that we have seen so far.Without compromise and agreement between the major global powers on reducing the huge global imbalances,this could easily result in a Depression which was averted in 2008.

China Says U.S. Complaint on Clean Energy Is ‘Irresponsible’ – Bloomberg

A complaint from the United Steelworkers union in the U.S. about China’s clean energy policies is “groundless” and “irresponsible,” China’s Ministry of Commerce said.China will protect its own interests according to the World Trade Organization’s rules, the ministry said in a statement posted today on its website. The U.S. government’s agreement to investigate the case is a “wrong” trade protectionism signal, the ministry said.

The U.S. acted on a complaint from the steelworkers union that the China’s aid to its clean-energy producers violates global trade rules. Accepting the petition may lead the Obama administration to file a protest at the World Trade Organization.The complaint, called a Section 301 filing, is the first filed and accepted by Obama’s administration after his predecessor, Republican George W. Bush, turned down trade complaints against China.


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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