News Article
Pentagon Orders A USA Only Policy
Move designed to keep out foreign manufacturer's solar products
In a move that is sure to increase tensions between China and the USA, the financial press is reporting that the Pentagon has issued a ‘buy American' policy when it comes to the purchase of solar energy panels for the military. Congress slipped in the language to military appropriations bills passed last month. Although the USA media see it as a way to cut China out of the USA market the impact of such legislation affects all non USA manufacturers.
Some of the rationale to the move seems to stem from members of Congress complaining that the government of China unfairly subsidises the country's solar industry, making it difficult for American companies to compete. As the industry relies on subsidies for current growth this does not stack up in the global context.
Congress comments suggest that the language of the order is so carefully worded that it should avoid any conflict with the World Trade organisation. This may change as the assumption in the USA is this is only an issue for China and the issues between the two countries. As other countries realised they have effectively been locked out of a potentially large segment of the market, the USA may find a number of countries lining up and protesting against such a decision.
With the USA complaining that China is not allowing a level playing field this seems a strange way to deal with the issue.
Some of the rationale to the move seems to stem from members of Congress complaining that the government of China unfairly subsidises the country's solar industry, making it difficult for American companies to compete. As the industry relies on subsidies for current growth this does not stack up in the global context.
Congress comments suggest that the language of the order is so carefully worded that it should avoid any conflict with the World Trade organisation. This may change as the assumption in the USA is this is only an issue for China and the issues between the two countries. As other countries realised they have effectively been locked out of a potentially large segment of the market, the USA may find a number of countries lining up and protesting against such a decision.
With the USA complaining that China is not allowing a level playing field this seems a strange way to deal with the issue.
