The US has launched a trade investigation into solar panels from India,Laos,and Indonesia,further extending its longstanding protectionist stance in the renewable energy industry.Such actions cannot help the US rebuild its industrial competitiveness,and only show a reluctance to face up to its own structural weaknesses.
The US International Trade Commission voted on Friday to proceed with an investigation into whether solar panels from India,Laos and Indonesia are stifling domestic manufacturing,Reuters reported on Saturday.The move follows the initiation of anti-dumping and countervailing duty investigations by the US Department of Commerce just weeks earlier against crystalline silicon photovoltaic cells imported from India,Indonesia,and Laos.
Apparently,India,Indonesia,and Laos have become new targets in the US solar trade dispute,and this is not the first time the US has resorted to protectionist measures in the solar energy sector.US solar manufacturers have reportedly claimed that Chinese companies with operations in those countries receive unfair government subsidies and are selling their products below the cost of production in the US.However,in line with other claims the US has made against Chinese industries and products,this seems like nothing but a flimsy excuse for taking protectionist actions.
Due to high production costs,American solar manufacturers have always been at a disadvantage in market competition.While trade barriers may temporarily restrict the entry of some imported products,they fail to change the fact that US companies'costs remain high.
The predicament faced by the US solar industry is not a result of external competition,but rather its internal structural weaknesses.The US has long been a powerhouse in scientific research and technology,with many innovative ideas born in its laboratories.However,the problem lies in the weak translation of these scientific achievements into industrial production.The transition from laboratory breakthroughs to mass production is often hampered by inefficiencies in supply chain integration and industrial coordination.As a result,the cost of US domestic solar panels is much higher than those produced in Asian countries.
Looking back,the US has previously imposed tariffs on Chinese solar products in an attempt to protect its domestic industry through trade barriers.Yet,years later,there has been no significant revival in its domestic manufacturing capacity.The fundamental issue lies in America's inability to achieve large-scale,low-cost production of solar panels.Whether in terms of industrial scale,market absorption capacity,or cost control,the US does not have the fundamental conditions to support a globally competitive solar manufacturing industry.
Moreover,the negative impacts of protectionism are clearly visible in the US solar market.Trade protectionism has led to a significant increase in the price of solar products in the US.The cost of solar installations in the US is three to four times higher than in other countries.Such high prices have deterred consumers,leading to a decline in demand for solar installations.With shrinking demand,many solar companies in the US are facing bankruptcy.In recent years,many solar companies,including some large-scale ones like SunPower,went out of business,according to media reports.This not only restricts the development of the US solar industry but also hampers the large-scale application and growth of the entire renewable energy industry.
By attempting to use protectionism to solve a cost problem that cannot be fixed through trade barriers,the US is working against economic principles.In today's highly globalized economy,tariffs and investigations alone cannot rebuild national industrial competitiveness.
To a certain extent,the struggles of the US solar panel industry are emblematic of broader challenges in US manufacturing.The country's strengths in high-end technology cannot make up for its weaknesses in market adaptation and industrial foundation.The core problem lies in its failure to control costs,which are rooted in complex structural issues,expensive labor,and relatively low production efficiency.These persistent issues are increasingly constraining the growth of the renewable energy industry in the US.
As countries around the world actively promote the expansion of renewable energy,the problems caused by these structural shortcomings are becoming more and more pronounced,as well as the gap between the US renewable energy sector and global leaders.However,it's also important to note that this is the outcome of the global division of labor,and win-win cooperation could still be carried out if countries pursue openness instead of protectionism.
