China Pulls a GM
China has pulled a
Government General Motors only it’s regarding solar power instead of transportation. From the New York Times:
China’s biggest solar panel makers are suffering losses of up to $1 for every $3 of sales this year, as panel prices have fallen by three-fourths since 2008. Even though the cost of solar power has fallen, it still remains triple the price of coal-generated power in China, requiring substantial subsidies through a tax imposed on industrial users of electricity to cover the higher cost of renewable energy.
This sort of government interference has also taken root in America; consider the Chevy Volt, losing up to $50K (and disputed by GM, and likely, the government) for each vehicle sold.
Per Obamanomics, China has a plan to make everything better: they’ll fix their per unit losses by increasing their sales volume.
Finally, doesn’t the photo make one long for a U.S. manufacturing resurgence?