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China Makes U.S. Green Tech Companies an Offer They Can’t Refuse

Invest in China now. China’s economic rise already has the United States shaking in our boots, and they’re about to deliver their K-O punch by emerging as the global leader in green technology.

In 2009, China invested $34.6 billion in clean technology and is becoming the world's leading investor in renewable energy technologies. China produces more wind turbines and solar panels each year than any other country. Now, they’re offering something most countries can’t: private and government grants, low-interest loans, and financial and tax incentives to lure green tech companies to open shop in the country. Many companies have already crossed the ocean to take advantage of the opportunity.

According to MIT’s Technology Review, Boston Power, a Massachusetts-based lithium-ion battery maker, is one of those companies. The Chinese government has awarded the company a package deal that includes $125 million in funds, loans, incentives and construction assistance for a new plant in Shanghai. This deal gives Boston Power a real chance to compete in the electric car battery market.

“We have a seat at the table as China is thinking about global policies,” Boston Power founder and international chairman Dr. Christina Lampe-Onnerud told WBZ NewsRadio.

This also means the United States will lose hundreds of jobs to China—something we can’t afford to do right now.

Applied Materials, a supplier of solar panel equipment based in California, has also moved to China to open a new research lab. The company secured a 75-year land lease from the Chinese government at a huge discount and will pay a quarter of the lab’s operating costs for five years.

Investors are also expanding to China. Private equity firm Hudson Clean Energy Partners is in the process of opening an office in Beijing.

“China is rapidly becoming one of the world’s foremost leaders in clean energy innovation and manufacturing, which is creating significant investment opportunity," said Neil Auerbach, co-managing partner of Hudson.

Unless the United States can cut through the red tape—which is virtually impossible in Washington, D.C., we’re going to lose—more like forfeit— the clean tech race.

Posted by Sherleen H. Mahoney on Oct 03, 2011 at 12:43 PM


Comments

Fri, Dec 9, 2011 phoenixproperty2 dhaka

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Fri, Oct 7, 2011 JaJ

Are we talking about government and money or a better place to live.

Wed, Oct 5, 2011 Bob

Even if the U.S. subsidizes the development of these technologies, what is there to suggest the products will be manufactured here? We used to have tariffs that applied when companies were "unfairly" subsidized by foreign governments. I guess the concept of an "unfair" subsidy no longer applies.

Wed, Oct 5, 2011

It is not the responsibility of the US Government to pick winning and losing sectors. Have you noticed what happened with Solyndra? We would be better served if the government would get out of the way and let market forces work. One last note- companies are in business to make a profit, that is the objective. Enough of this silly talk about purpose first, profits second. Does anyone honestly believe that Apple or Microsoft had this in mind?

Wed, Oct 5, 2011

So are you suggesting the US Government subsidize the industry? Please see how that is working for Spain. When you say that China invests by definition that means there will be a return. Being a communist dictatorship allows them to do so without any regard for public opinion. I have lived and worked in China and believ me we in the US do not want to live in that type of system.

Wed, Oct 5, 2011 Jerry Lee

You are right, Ram. But companies are more interested in profit than purpose, wouldn't you say? Given a choice I think they will choose the carrot every time and I understand the logic but just wish it wasn't so. The U.S.A. needs to really compete better in this market and offer more incentives to keep green tech companies here!

Wed, Oct 5, 2011 Ram Shrivastava Rochester, N.Y.

The American Green technology companies have a choice. Grab the Chinese Carrot and help them Grow, or think about being a company that has " for Purpose" attitude first and " for Profit" next. Why not take LEAD and make products in America to achieve energy independence. The U.S Govt. incentives should be tied to US Made products to help create jobs here.

Wed, Oct 5, 2011 Julia Steinhouse California

It's embarrasing that the US is being surpassed in everything right now. I agree with you. If we don't do something now the US will get left behind.

Wed, Oct 5, 2011 Common Citizen

China pays for all r & d expenses, and subsidizes the final product to keep their workers employed in their communist country. The U.S. subsidizes "green energy" with tax credits. Without all this government intervention this market would not exist.

China has no "KO" punch. Read the WSJ and investor news. Their company shares are overvalued, and investors are fleeing.

I am VERY happy that China has emerged as a world competitor in business and a key trading partner. That makes the chances of future military conflict less likely.

Mon, Oct 3, 2011 Richard Lemieux Texas

USA invests in oil tax cuts. China invest in the future. USA will fade as a second player in most fields because of our political system. Old, cash rich corporations owns the political parties.

Anyway, global warming is a problem for the rest of the world. Unfortunately here in Rick Perry's Texas, we do not know about it.

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