▲ | ajross 3 days ago | |
This is absolutely true. The strategic goal of "dumping" is to drive competitors (the example here being the US solar panel industry) out of a market, with the implied goal of raising prices at the end of the process. But it almost never works that way in practice. Pretty much by definition, products that can be dumped are ones that can be manufactured with easily scaled production equipment at low margin and high volume. If you can dump your competitors out of business, so can someone else, to you. And that's the way it generally happens (c.f. DRAM in the 80's). The "dumping" phase of a technology curve is succeeded not by a cartel with a tight grip on the previously competitive market, but by an extremely competitive market of producers all undercutting each other. Almost everyone wins, except the original high-margin producers. But they (c.f. Intel in the 90's) tend to move on to other products anyway. No one wants to make junk for a living. | ||
▲ | duskwuff 3 days ago | parent [-] | |
> The strategic goal of "dumping" is to drive competitors (the example here being the US solar panel industry) out of a market Which makes very little sense, because the US solar panel industry is practically nonexistent. There are some companies that do last-stage assembly of solar panels in the US - probably to meet "made in USA" requirements - but the solar cells themselves are almost all made overseas. In short, there's nothing there for China to dump on - the US is not a competitive threat to China in this sector. All indications are that Chinese solar panels are cheap because they're being manufactured in immense volumes to help meet China's own energy demands. The international sales are a bonus, not the primary goal. |