European energy policy is in dire straits. The fact that Spain is in the process of cutting subsidies for renewable energy production points to the slow decline of green initiatives in Europe.
The European solar industry grew too big too quickly thanks to a plethora of start-up grants and subsidies during the 2000s. EU energy experts believe that the fact China dumped solar panels and solar cells and silicon wafers into Europe ended up severely depressing prices.
Now China and Europe are going toe to toe in what looks like a trade war.
The Chinese seem poised to dominate Latin America, a region they see as more lucrative place to invest than their previous focus of Africa. In fact, the Chinese seem to be dealing with somewhat of a backlash in Africa due to relentless investing and at all costs economic dominance.
Gabon is seen as the next big African offshore oil play, and the recent creation of a national oil company suggests the West African nation is determined to retain control over any bounty. Now, Gabon’s government declared it will repossess assets from China’s Sinopec oil company due to alleged breaches of contract.
Initially, Chinese businesses were more appealing to African governments than US ones because of their unique approach to business. Many Chinese businesses prioritized growth over the environment and quality of life, and Chinese workers settled in massive numbers and worked for low wages, creating an economic boom.
It’s only now that the cost of China’s by any means necessary business model is being discovered.
