China faces solar energy crisis
China is recently attempting to fight against the restrictive trade policies western or neighboring countries have imposed. The boycotted trades creates challenges for the communist country, especially in the energy sector.
The world’s largest country by population has faced power grid challenges and many argue this has led to the country’s increasingly hawkish stance on Proof of Work cryptocurrency such as Bitcoin. China previously had hosted one of the largest Bitcoin mining outlets before this activity was eventually banned.
It wasn’t clear the reason for this approach as many investors in the space believed this was just a tactic to scare new investors to sell their assets. However, some might argue that such approach might have been due the fact that in some regions the country is facing challenges with the power grid and some crypto currencies are known for using massive amounts of energy.
Attempts to mitigate
Wang Xin, deputy chief of Trade Remedy and Investigation Bureau at the Commerce Department, declared Wendesday(15) in a metaverse lobby that Chinese organizations should find legal ways of combating the trade restrictions against solar products while the industry should find ways of increasing resiliency, autonomy and credibility.
“Trade frictions are still at a high prevalence globally, and photovoltaic products are among the hardest-hit areas,” Mr Wang says. “This is building up trade protection systems and increasing trade frictions, which have brought severe challenges to our solar companies.”
The Commerce Department bureau will continue to protect and assist companies when they expand in international markets, he further added.
International asset and slave labor
US house recently passed legislative articles that boycotts goods from China’s Xinjiang region. The exception is if companies based there can prove they have not been made with forced labor.
Customs in US has confiscated solar panels from several companies believed to have ties Xinjiang region. The reason was suspicion of forced labor .
A history of restrictions
The communist state has seen in recent years various forms of backlashing and sanctions from the American government on various grounds, ranging from lack of transparency on financial reporting to espionage attempts via mass distribution of 5G microchips
Earlier this year known companies such as Alibaba or Nio have been marked with a risk of being delisted from the NYSE since the financial reporting delivered by these companies was not up to par to the requirements of the US public stock markets.
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