this post was submitted on 07 Jul 2024
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Clean energy, and its Hardware might also be cheaper. So whereβs the problem?
There's a bunch:
And in addition to that, let's not forget that the cheap price comes from a country with intransparent supply chains and from the use of forced labour.
The problem is the same with the solar industry that Germany once had (or any sort of domestic manufacturing, really). Without heavy subsidies they cannot compete with the cheap Chinese prices, making them non competitive on the market.
It's not just any products. China as a country is capable of making long-term bets on select industries: they select scientists, they build up regional supply chains, and importantly, they give subsidies, supposedly until Chinese companies have won the market but who knows. Their leadership was clever enough to make a couple of good bets on green tech. And that's what sets them apart any EU country right now.
Even with subsidies the West could not compete due to China's lower production cost from their cheap & forced labor forces or their lack of various regulations.