CHINA-US SUMMIT ON WIND

Hu Jintao Visit to U.S. Pushes Wind-Power Subsidy Issue Into Spotlight
Joel Kirkland, January 5, 2010 (NY Times)

"President Obama plans to roll out the red carpet when Chinese President Hu Jintao lands on American soil [January 19]…[A]s the United States emerges from its economic recession and as China's role in the global economy expands further, analysts say trade issues, including one dealing with China's support for clean energy companies, will grab headlines.

"The administration late last month said it is requesting consultations with China at the World Trade Organization to end China's government subsidies to wind-power producers."

It was China, the U.S. and the rest of the world in new installations last year. (click to enlarge)

"The United Steelworkers (USW) in September filed a 5,800-page petition with the Office of the U.S. Trade Representative (USTR) that called on the Obama administration to launch a formal investigation into whether China has ignored international trade agreements to help its clean-energy technology sector. It cited a fleet of government export subsidies, including low-interest loans and access to cheap land, that allegedly give China's lower-cost manufacturers an unfair advantage.

"In explaining the Dec. 22 request for consultation with the Chinese on the wind-power subsidy issue, the USTR targeted a nearly $1 billion [Wind Power Equipment Fund which is contingent on the use of domestic over imported wind power equipment and] the United States claims could violate WTO rules…"

The steelworkers, environmentalists and the wind industry want it to be the U.S and China and the rest of the world. (click to enlarge)

"…Kelly Sims Gallagher, professor of energy and environmental policy at the Fletcher School at Tufts University…took issue with the idea that China hasn't played fair by developing competitive advantages in clean energy, particularly its low cost of labor and its development of a mechanized manufacturing process…Through coherent national policies meant to build up wind power in China, she says the nation's carved out a growing domestic clean energy market, something she says the United States hasn't done…

"U.S. companies with interests in China have been steadfast in their plea for Congress and the administration to refrain from stirring up a trade war. Still, few have openly criticized the United Steelworkers, or the administration, for stirring the pot on the issue of clean energy subsidies…The leaders of both countries appear interested in managing the relationship and ensuring its trajectory leans toward open and positive dialogue…"