Saturday, September 3, 2011

US Solar Wipe Out

The bankruptcies of three American solar power companies in the last month, including Solyndra of California on Wednesday, have left China’s industry with a dominant sales position — almost three-fifths of the world’s production capacity — and rapidly declining costs.
Some American, Japanese and European solar companies still have a technological edge over Chinese rivals, but seldom a cost advantage, according to industry analysts. (1)

Well yes, the liquidation of rivals through bankruptcy or war is much of what capitalism is about - winners and losers, with the winners absorbing market share and intensifying monopoly power. I'm not sure why I'm supposed to care if 'they' win or 'we' win - a boss is a boss, and surely few would argue that American bosses are more ennobled than Chinese. For most people the crux of the matter is the struggle between workers and bosses, not the eye shape of their boss. It is only a cadre of parasitic upper management types who gain their status through connection, in other words, the New York Times' core target audience, that cares of these internecine bourgeoisie rivalries.

And the riposte from Washington: the Chinese are cheating !

“There is no question that renewable energy companies in the United States feel pressure from China,” said David B. Sandalow, the assistant secretary for policy and international affairs at the United States Energy Department. “Many of them say it is cheap capital, not cheap labor, that gives Chinese companies the main competitive advantage.”

1'China Benefits as U.S. Solar Industry Withers' New York Times

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