Microeconomics - Coursework Example

Dumping Accusations against China Electronic waste, otherwise known as e-waste, encompasses discarded or dumped electrical gadgets such as solar panels among others. Rapid changes in innovation and technology have brought about unpleasant excess of electronic waste worldwide. Several anti-dumping investigations have been carried out for decades and China, among other countries, has always been the culprit of electronic dumping. This report intends to discuss some of the allegations held against China in matters to with dumping of solar panels.

Recently, seven solar panel producers based in the US filed an expansive file case in Washington against the Chinese companies that produce solar panels. The seven companies claim that China government avails subsidies to its enterprises in an effort to increase their sales in the US market. According to EU Prosun, there is substantial proof that China is dumping solar panels in both the US and EU markets (1). Without any doubt, Chinese government policies demonstrate that companies are selling their solar panels at a price below the production cost.

The contention has its origins in a surge of cheap Chinese solar panels that made several US companies go bankrupt. The US government has actually taken some bold steps to reduce the inflow of cheap solar panels from both Taiwan and China. The decision is part of the long battle between the US and Asian markets. Statistics shows “both Taiwanese and Chinese governments exported solar panels and related products to the US worth $2.15 billion” (Mauldin 1). Germanys SolarWorld AG, a unit based in the US, brought the most recent case.

The company claims to be a casualty of both dumping and unreasonable endowments from China. As a result, these practices harm the companys ability to increase its sales in the US markets. In a different turn, “the US government has additionally blamed Chinese hackers for infiltrating into computer systems of SolarWorld with an aim of picking up competitive advantages” (Mauldin 4). Against all odds, both the Taiwanese and Chinese governments failed to defend itself on some specific inquiries (US Department of Commerce 2).

Reference EU ProSun. “Dumping.” N.p. (2014). Web. 4th March, 2015.Mauldin, William. “U.S. Finds Chinese & Taiwanese Companies Dumped Solar Panel Equipment.” The Wall Street Journal (2014). Web. 5th March, 2015.US Department of Commerce. “Fact Sheet.” International Trade Administration 1.12 (2014): 1-9. PDF file.