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Dumping is when a producer sells their product at a lower price abroad than they do domestically [1]. For example, if Chinese solar panels sell for the Renminbi
by philipkglass 4y ago
Dumping is when a producer sells their product at a lower price abroad than they do domestically [1]. For example, if Chinese solar panels sell for the Renminbi equivalent of 35 cents per watt domestically, but are sold for 30 cents per watt in the United States, that would be dumping.
As far as I can tell, Chinese solar manufacturers do not engage in this sort of straightforward and easy to define dumping. They sell their products at comparable low prices both domestically and abroad. The United States claims that advantages given to Chinese solar manufacturers (like low cost land and industrial partnerships with local governments) are unfair and counters them with measures termed "anti dumping" tariffs. Given how many perks American states and municipalities roll out to attract manufacturing jobs, including solar jobs [2], I don't see how the Chinese incentives for solar manufacturing go too far. I rather think it's something like the situation with Canadian softwood exports to the US [3]: the US government's position is dubious, but it's too powerful in practice to be held to account.
[1] https://www.investopedia.com/terms/d/dumping.asp https://www.investopedia.com/terms/d/dumping.asp
[2] https://bgindependentmedia.org/first-solar-site-promising-500-new-jobs-gets-tax-break/ https://bgindependentmedia.org/first-solar-site-promising-50...
[3] https://en.wikipedia.org/wiki/Canada%E2%80%93United_States_softwood_lumber_dispute https://en.wikipedia.org/wiki/Canada%E2%80%93United_States_s...