The looming shadow of the upcoming election has me viewing every piece of news through its lens. Yesterday, I read an article on Bloomberg, titled "How American Tax Breaks Brought a Chinese Solar Energy Giant to Ohio." The article explores how the Inflation Reduction Act has not only revived American manufacturing jobs but also created a unique opportunity for China to extend its influence in clean energy technology within the U.S. (10/29/2024).
In Ohio, a new factory—a joint venture between Invenergy, an American renewable energy developer (holding 51% ownership), and Longi Green Energy, a leading Chinese solar company (holding 49%)—is now producing solar panels. American workers, alongside Chinese experts, form a skilled and well-paid workforce. With Longi providing advanced technology, the collaboration allows for the production of tariff-free solar panels for the U.S. market.
Currently, over 100 Chinese workers are stationed on site, working with more than 1,000 Americans. This arrangement is temporary, set to end once American workers are fully trained and most Chinese workers return home.
This story exemplifies a growing pattern in renewable energy partnerships between the U.S. and China, combining American labor with Chinese expertise to produce tariff-free solar equipment for the domestic market.
Beyond job creation and competitive wages, this model highlights how international cooperation in green technology is revitalizing local economies. Additionally, China-based companies are replicating this approach across the U.S., establishing high-capacity plants that contribute significantly to American renewable sector.
As the election nears and uncertainty looms larger, questions arise about the future of these U.S.-China manufacturing partnerships. Will these U.S.-China joint ventures in manufacturing survive the political tides? Could they be dismantled under the guise of national security or economic priorities, despite their clear benefits for U.S. jobs, renewable energy goals, and local communities?
A Chinese saying, 合则两利，斗则两伤 (Hé zé liǎng lì, dòu zé liǎng shāng), means "When united, both sides benefit; when at odds, both are harmed." It emphasizes the mutual gains that come from collaboration. At the same time, it hints at the potential losses if political tensions disrupt these partnerships, emphasizing that cooperation leads to growth, while conflict only brings setbacks.
As the U.S. pivots towards a greener future, the fate of these U.S.-China collaborations rests on many things that are beyond control. Whether these ventures can withstand shifting priorities remains to be seen, but their success underscores the Chinese saying, —when united, both sides prosper.