Comment by user_7832

15 hours ago

> China aren't offering a cheaper solution. They are subsidizing an existing one (which is already subsidized) in order to gain foothold.

In my economics classes, we were told that (in a "free market" argument) the best thing to do if a subsidy is making something you want cheaper is to use it. You're getting your thing, and at a reduced cost.

(I'm not really replying to you per se, I'm curious how "free market" folks in these comments would respond to this.)

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user_7832

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nutjob2  14 hours ago

This is why I don't understand why people complain about impractically cheap Chinese solar panels. The rest of the world should buy enormous quantities and bankrupt the mofos and hugely benefit along the way. Then later they can set up their own solar panel industries.

  • westpfelia  13 hours ago

    Because they arent selling at a loss. The business pipeline is subsidized by the state. But end to end from mining the minerals to shipping you the solar panel everything is "in house". Its all in China. Thats why why can sell so cheap. Its even cheaper to make.

    This narative that the CCP is just subsidizing all business to "beat america" is just dumb. Its the build process being made cheaper by the government. Not the final product.

    • mcmcmc  8 hours ago

      Let’s not act like the US government isn’t subsidizing AI either with massive contracts. Anthropic is selling subscriptions at a loss; reselling tokens is just arbitrage.

      5 replies →

    • eru  13 hours ago

      As far as I can tell, the Chinese government itself is complaining about 'oversupply' in the solar panel market. Ie it doesn't sound like they are subsidising it anymore.

      1 reply →

    • nutjob2  8 hours ago

      Selling at a loss isn't required.

      Local governments are over-funding numerous producers (though cheap loans and other subsidies and incentives) creating excess competition. This is an ongoing problem and is a huge misallocation of capital. Increasing demand just drives this process harder and puts downward pressure on margins. As soon as they try raising prices, or just through satisfying total demand, demand collapses and they (almost) all go out of business.

      The Chinese model has weaknesses, we should be exploiting them.

      3 replies →