Why We Need To Work With China On Accelerating The Clean Energy Revolution

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Accelerating the Clean Energy Revolution by Working with China

The tariffs recently placed on a variety of goods from China — including electric vehicles, semiconductors, solar cells, and batteries — are the latest in a slew of actions Washington, D.C., has taken to be tough on China.is a professor of energy systems at UC San Diego’s Jacobs School of Engineering and School of Global Policy and Strategy. Together, they explain why an alternative approach for relations with China is needed to fight the threat of climate change.

The big opportunities in competition and collaboration aren’t in ingredients but in products—the place where China is really excelling through innovation and excellence in design and manufacturing. Chinese battery and solar producers are world-class—they operate and, increasingly, define the global frontier. Their competitiveness comes from manufacturing innovations geared to producing huge volumes with minimal cost and defects.

Tariffs harm the United States in two ways. First, by driving up the cost of Chinese imports, tariffs make it harder for anyone who wants to use solar panels or batteries to reduce emissions. Along the way, these tariffs temporarily make some American firms more profitable, but the main effect so far has been to encourage Chinese firms to relocate their supply chains—first to Southeast Asia and now globally. Second, and more perniciously, tariffs are politically destabilizing.

 

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