From an item on Newsnight :-
The EU accuse China of "dumping" cheap solar panels in europe, subsided by the chinese government, to maintain employment.
So, we get cheap panels, for the green people, at chinese expense. What's the problem ?
To create prosperity in a former east german town, an EU or german government grant was used to set up a factory to manufacture panels.
Exactly which source wasn't clear, but there's probably little difference. The factory is fully automated, employs around 10 people,
mainly in quality inspection. There must be peripheral employment, but even with that included, it would hardly bring prosperity to the area.
The factory can't compete because of the chinese subsidy, and is demanding EU action. An EU decision is to be made within two weeks,
or hopefully before the sun goes out. The proposed EU response is a 38% import tax to redress the balance and keep the factory viable.
Meanwhile, a factory in the UK makes frames which support the chinese panels, currently employs around 30 people, with expected expansion to 65, assuming current sales continue. Making frames for chinese solar panels is not my idea of "high end manufacturing", our supposed salvation, but it is employment. If the 38% import tax is imposed, to save the german factory, the panel price will increase in step. UK factory sales will suffer, due to increased cost, and the future of current employees is uncertain, quite apart from the planned expansion.
Overall, if the EU decides in favour of the tax, it means an increase of 38% if you want a solar panel, and lost jobs in the UK.
I realise there will always be winners and losers, but is our horse going to be chopped off at the knees again ?
Any bets which way this will go ?............................... And, who collects the 38% tax ?
The EU accuse China of "dumping" cheap solar panels in europe, subsided by the chinese government, to maintain employment.
So, we get cheap panels, for the green people, at chinese expense. What's the problem ?
To create prosperity in a former east german town, an EU or german government grant was used to set up a factory to manufacture panels.
Exactly which source wasn't clear, but there's probably little difference. The factory is fully automated, employs around 10 people,
mainly in quality inspection. There must be peripheral employment, but even with that included, it would hardly bring prosperity to the area.
The factory can't compete because of the chinese subsidy, and is demanding EU action. An EU decision is to be made within two weeks,
or hopefully before the sun goes out. The proposed EU response is a 38% import tax to redress the balance and keep the factory viable.
Meanwhile, a factory in the UK makes frames which support the chinese panels, currently employs around 30 people, with expected expansion to 65, assuming current sales continue. Making frames for chinese solar panels is not my idea of "high end manufacturing", our supposed salvation, but it is employment. If the 38% import tax is imposed, to save the german factory, the panel price will increase in step. UK factory sales will suffer, due to increased cost, and the future of current employees is uncertain, quite apart from the planned expansion.
Overall, if the EU decides in favour of the tax, it means an increase of 38% if you want a solar panel, and lost jobs in the UK.
I realise there will always be winners and losers, but is our horse going to be chopped off at the knees again ?
Any bets which way this will go ?............................... And, who collects the 38% tax ?
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