China & EU Settle Squabble Over Wines and Solar Panels
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  • Thirdsyphon

    Honestly, it sounds to me like nobody “won” this round. The Chinese agreed to let the EU keep subsidizing its winemakers, in exchange for which the EU agreed to allow China to continue pouring money down the rathole of its immensely-subsidized solar panel industry.
    China’s industrial policy has been to subsidize their solar industry to such an extent that American competitors have been largely driven out of business. If it turns out that solar *itself* is not competitive, and cannot be made so, then China is stuck with a very expensive white elephant in the form of its solar industry. . . and one that it cannot afford to stop pouring money into, given China’s need for economic growth.
    The real lesson to be drawn here isn’t about Green vs. Brown. It’s about the limitations and frequent follies that often plague subsidized industries.

    • rheddles

      The vintners and America won. Everybody else lost.

  • Corlyss

    The way to hurt the Chinese is to stop the mad, self-destructive death embrace of wasteful, over-priced, prosperity-killing renewables. They are the mythical Northwest Passage of the 21st century, a wholly self-inflicted wound on the struggling Western economies.

    • Thirdsyphon

      Ironically, the Northwest Passage now exists.

      • Corlyss

        Yes, but not where everyone said it was or ought to have been. That route is still a myth.

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