All new products are sold below cost until their development and marketing costs are paid off. Even if we look only at the incremental costs associated with each individual sale item, how does the law balance accusations of "selling below cost" against building market share in anticipation of gaining economies of scale when sales volumes grow?
Most people in the US want to buy stuff cheap but get paid lots of money to do it. Why wouldn't we? However, someone has to pay in the long term. I'm curious to see the effect that this tariff has on a market with dubious economic necessity.
Japanese government should definitely put high tariff on imported US cars given their heavy government subsidization; China should put high tariff on all imported US soybeans for the same reason...
why those governments/politicians advocated free market for decades are now doing the opposite?
Crystalline photovoltaic isn't new technology. The efficiency of the panel is not high enough. I believe US shall focus their energy in creating new and more promising renewable energy. The tariff may help US government subsidizing company which has created a more promising technology.
A very sensitive area on both sides with some interesting comments above. Hopefully, we can do whatever it takes to get the industry moving on its own without the need for government intervention on either side. It would be nice to see the free market given a chance to work for a change, although it certainly appears too late in this industry, and would require a great deal of restraint on the part of all governments since that would not be a one-sided arrangement.
The wages of Chinese workers toiling in the technology sectors are slowly increasing, making it more expensive to manufacture products like solar cells and panels there. Still, massive government subsidies continue as does Beijing's unwillingness to let its currency float (so as to keep Chinese products cheap on global markets). The U.S. tariff move in an election year appears designed to suggest action against cheap Chinese imports while accomplishing very little. It's clear that the best way to compete with China is through innovation in areas like solar materials and manufacturing processes. A trade war hurts both nations, and the leaders of both China and the U.S. understand this.