First, it was steel. Then came paper. Now, unless the Obama administration acts, Wisconsin's solar manufacturing industry will be the next victim of China's efforts to undercut American manufacturers and destroy jobs.
As the president of a company that installs solar systems in the Green Bay area, I have seen the impact of China's efforts first-hand. In the past, we had dozens of options to choose from when buying solar panels. Chinese companies were on the same playing field as the rest.
Today, the situation is quite different. The Chinese dominate the solar industry, representing more than half of the market. How did things change so quickly? The reason: China's tried and true practices of subsidies and dumping.
The Chinese national and provincial governments have provided subsidies at mind-boggling levels. Consider this: between 2002 and 2009, China provided its paper industry $33.1 billion in subsidies that were used to cripple Wisconsin's paper industry. In 2010 alone, the Energy Department estimates the Chinese solar industry got more than $30 billion. Moreover, Chinese CEOs admit they have been dumping their modules at prices they admit are unsustainable.
Not surprisingly, China's unfair and illegal trade practices have devastated America's solar industry. In the last two years, 12 domestic solar manufacturers have closed or downsized, resulting in the loss of thousands of American jobs, including dozens at Milwaukee-based Helios Solar Works. As a result, American solar products are hard to find. My company has installed only one American-made solar system since January.
It is vital that the Obama administration support our domestic solar energy industry and keep these manufacturing jobs in the United States. Manufacturing jobs offer workers better pay and benefits than other sectors. These are the types of jobs Wisconsin needs. With demand for solar energy in Wisconsin expected to grow thanks to Madison's renewable energy mandate, it would be great if those panels could be made in America, not China.
Chinese unfair and illegal trade practices have united Wisconsin's congressional representatives. In February, Reps. Reid Ribble (R-Sherwood) and Tammy Baldwin (D-Madison) proposed legislation that would allow the federal government to penalize Chinese firms found guilty of pummeling American industry with the one-two punch of dumping and illegal subsidies. A version of that bill passed the U.S. Senate unanimously and the U.S. House 370-39.
Now it is time for the Obama administration to use the tools it has to stop the assault on the American solar industry. U.S. solar manufacturers, led by Helios, filed trade cases with the Obama administration against the Chinese seeking tariffs as a remedy. While the Administration's rhetoric has been promising, its actions so far have been lacking.
U.S. companies can compete and win against Chinese competitors, but only if it is done on a level playing field. Nations that break the rules to give their industries an unfair advantage must be held accountable. It is now up to the Obama administration to stand up for American manufacturing jobs in Wisconsin and around the country.