China's Ministry of Commerce has voiced a strong protest against the preliminary anti-dumping ruling on China-made solar panels by the US Commerce Department. Once the ruling becomes a final decision, it is certain that China will hit back.
Yet China is not in a favorable position in current trade frictions with the US, which maintains global dominance bolstered by the dollar, the military and the US market. China only has its own market, which is comparatively smaller than that of the US, making a tit-for-tat trade war impossible.
Products made in China are generally less technologically sophisticated and substitutes can easily be found. This puts Chinese manufacturers at a disadvantage. Besides, the fierce competition among domestic manufacturers in China has already brought down export prices, leaving exporters slim profit margins.
Nonetheless, we have to find counter measures and let the US feel some pain, even if the hurt won't last long. We must let them know that China's ability to do damage over trade disputes is growing. The solar industry is important for the future of the whole world, and it's especially important for China. It was a German company that initiated this anti-dumping investigation in the US and it is not unreasonable for people to keep an eye out for a US-German alliance.
Solar energy is a red hot market coveted by both the US and EU. It became a trilateral game when China stepped in and wanted to take a share. There is a serious possibility of a US-EU alliance against China.
Currently we have to take a guarded position. We should win back the lost territory step by step and eventually build up our defenses. We can neither give up, nor start an all-out counterattack in indignation.
The Chinese market can punish the Philippines, yet it's still a lightweight when facing up to the US. On the contrary, the US can easily make trouble for China. If everything goes smoothly, this situation will be reversed after a decade or two.
Chinese enterprises, industrial groups and the Ministry of Commerce must join in this battle, challenge the US as long as possible, and reduce our losses. During the process we must maintain our bottom line.
The US has made Chinese businesspeople and enterprises suffer losses. This is the price paid by the entire nation. The US bullies us and at the same time guides us. We will grow stronger only by playing with such a strong adversary like the US.
It is time for China to prepare a number of "missiles" aimed at the US Commerce Department. But these missiles must be fired precisely, as there is not much ammunition.