Solar energy has been on the rise due to its clean and environmentally friendly nature. Since its introduction, the new form of energy has been on the rise and has hit the world with many debates arising from its use and that of the well-known fossil fuel and many other types. Unhealthy competition has hit the solar industry in a European country, and the industry has felt the pressure from Chinese countries, this has also brought about debates of all kind. The Europeans countries have felt that the unhealthy competition which they face against Chinese have been undermining them, this cry has been taken by the Europeans union and actions seems to be in line. The Europeans countries are crying fouls that the Chinese countries make and dump cheap solar in the Europeans market thereby ruining the market and bringing about unfair competition in the market. Other than the cheap and low quality products, the companies cry that the Chinese counterparts have used to their advantages the loans and subsidiaries which they are granted as a power to marshal the market, and hence they pose a threat to the development of the Europeans companies in their motherland. This plus many other reasons, the EU has now realized that the Chinese companies are a threat and has staged up an investigation into the matter as asserted by Feenstra and Taylor (2017). The study is aimed at putting down the businesses that dump the cheap solar panels on the market in Europe. The EU has banned this action, and the reaction has been aired. There are companies and other individual who view this call as a threat to the entire Europeans countries. They claim that the prices may shoot. On the other hand, there are those who are supporting this issue and have sighted the kind of unfair competition this industry has brought to the EU markets.
In my opinion, this effort may not produce much fruits as much as the two antagonizing sides are concerned. First, the withdrawal of Chinese product in the EU market is going to increase the cost of the solar panels in many EU countries. The Europeans countries have been heavily reliant on the cheap products which are offered by the Chinese solar company. The Chinese companies have dominated the Europeans market since they offer cheap solar panels. It means that their withdrawal will bring a situation where the prices of the panels and other solar related products increase (Chaffin, J. 2013). This will hurt the consumers. Alternatively, the economy of the some of the European countries will have to feel the ripple effect of this decision. For instance, the Chinese companies have employee some of the workers from the European countries as sale agents, producers and many others. This way, they have been contributing positively to the economy of these countries. This will have some effects on the stability of such economies. Alternatively, the effect is already being felt by the Chinese companies too. Many companies are currently collapsing as a result of this action. This means that the decision has same adverse effects on both sides and hence this decision is not the best in this case.
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The best solution is the one which will have mutual benefits on the two sides. The EU should not rush to burn the product yet there are others ways in which they can use to ensure that Chinese company and the Europeans companies work in harmony. First, they should look for ways in which to set standard prices for some of the typical product putting in consideration production cost and others. This will ensure that the competition is based on merits and quality as well as the quality of services. This will make sure that both sides thrive based on their strategies since the prices shall be constant. An alternative solution to these issues is the negation for or coalition partnership between the two countries companies. They should be well-negotiated policies which encourage collaboration; mergers man others which will ensure that there is equity on issues of prices and policies on the industry. The rules that discourage unfair competition also can help in solving this situation. These are some of the solution EU should be giving a chance, but not burning one side which will end up spreading hatred or even trade war among the countries (Chaffin, J. 2013).
Solar energy is a very young industry that still needs guidance for it to achieve maximum height in the market. The company has not stabled and is currently facing enormous challenges from other industries such as the fossil fuels and many others. This is the main reason why this company has been struggling despite the fact that many people like the potable and clean energy. The EU, therefore, is the only option and solution for this industry (Feenstra & Taylor, 2017). They need to play their cards well to enhance the development of this industry mostly in many Europeans countries. For instance, the EU needs to be very creative to ensure that they partner with the powerful Chinese companies to help them gain an advantage. They should do this by luring them and putting up policies which enhance partnership to improve better relationship between the two countries. In this way, they will help to build this industry many countries in the great Europe and many other nations in the world.
References
Feenstra, R. C., & Taylor, A. M. (2017). International trade (4th ed.). New York, NY: Worth.
Chaffin, J. (2013, May 10). Solar flares: Trade. Financial Times, 11. Retrieved from https://libraryresources.columbiasouthern.edu/login?url=http://search.proquest.com.libraryresources.columbiasouthern.edu/docview/1349784977?accountid=33337
