Reply #4: You are aware that US is major producer of wind turbines and China is directly offsetting [View All]

[Statistical]

mnaufacturing cost.

This isn't a subsidy or rebate for the consumer but a method to create an unfair advantage (see "dumping") and is in direct violation with international trade agreements.

Essentially US (and Germany, and South Korean) companies need to price wind turbines to sell at a profit.
Chinese companies get a subsidy for each turbine sold so they can price them BELOW cost, hell they can price them below the raw material cost. Essentially they sell them at a loss and still remain profitable via Chinese subsidies.

Hypothetical.
Cost to produce 1MW turbine: $3 million
Chinese subsidy: $2 million
Market price (average of fairly competing international companies): $5 million
Chinese "market" price: $2 million.

The Chinese company can sell the turbine at $2mil ($1 million below cost) and still walk away with $1 mil profit because of illegal subsidies.

Now why would China do this? Once China destroys world market for turbines by undercutting every manufacturer and closing plants all over the world, they can stop subsidies and keep lions share of a very profitable, rapidly growing industry.

Somehow you think this is "fair" and Obama shouldn't challenge it with the WTO? Really I am curious.

Given three options:
a) Allow it to happen and watch factories close in the US
b) Challenge it in the WTO and get worldwide tarriffs on Chinese wind exports until they stop
b) Can't beat them, join them. In direct violation of international trade agreements provide illegal subsidies to US manufacturers to undercut China and allow them to sell product below cost.

Obama is going with B. What is your answer?