China Violates WTO Agreements with Cleantech Ambitions
The good news is that China, a country poised to be one of the world's biggest energy consumers, is also striving to be the world’s ‘green tech’ leader. The not-so-good news is that in its zealous pursuit of that goal, China may be violating its World Trade Organization (WTO) agreements and making market-hungry foreign green-tech industries very unhappy - including those in the U.S.
China is rapidly moving towards non-carbon energy sources, particularly wind and solar. This movement represents a very lucrative market opportunity for foreign industries offering relevant goods and services. However, according to a new report from the Washington-based National Foreign Trade Council (NFTC), China is putting measures in place to bolster its domestic green-tech industries. This includes directing its state-owned businesses to give preference to Chinese manufacturers when purchasing energy-related materials. The NFTC report points out that this is a direct violation of the WTO accord.
In response to China’s perceived trade protectionism, U.S. green-tech industries are pressuring the Obama administration to establish an accord with the Chinese government to to ensure U.S. businesses are not shut out of China’s exploding green-technology market.