China and Green Energy
This is a sector I love to discuss and throw out there. There was a topic a few weeks back about the Wall Street 2 movie predicting the future about green technology. Here is the link to the article. It is very interesting
http://www.nuwireinvestor.com/articles/china-name…
I don't know what your feelings are on green/alternative energy, but it WILL be here before long. I give it about 10-15 years before everyone is rushing to get ahold of some hot green energy stock for an IPO. This article is fantastic, which I came across earlier today. You monkeys may have also noticed that Google made a $5 Billion investment in wind energy off the east coast. A few reasons why if you get ahead of the game now, you will become very wealthy in a few years time with green energy investments, especially in China:
1.)China, which has about 1.4 billion citizens, and growing exponentially, has mandated that it wants at least 15% of electricity to come from renewables. In 2008, it had 8%. Thats a huge increase
2.) China is quickly(or already has) become a world power, its Big 4 state owned banks make BAC, JPM, C, and WFC look like SunTrust in terms of assets and sheer power. The state of China has mandated that these banks lend to support the growth of green energy, to the tune of $30+billion, as compared to the United States investment of about $18 Billion. They also provide subsidies for these companies.
3.) As tensions mount with the US and the MIddle East, (which is 100% likely) our government will make a unheralded push for energy independence. We already produce the most capacity for wind energy, recently surpassing Germany, Denmark, and China.
I agree that we don't have the infrastructure for these technologies, nor are they commercially and economically viable, but while everyone searches for profits in the US treasuries, there are companies with seed capital slowly but surely developing and improving this technology, in both the US and China.
4.) Lastly, if the US gets off their butts and direct our resources towards green technology, it will be the ONE thing to make our country an economic power like before. We are a second rate power with no industry but services, which doesn't provide a platform for growth and sustainability.
Any thoughts?
China doesn't have the capability to replace America as green tech leader. A lot of green tech used in China is behind US companies. The only advantage is cost of labor and maybe rare earth reserve as well. If Mr. Obama Hussein successfully appreciated CNY, China wont get be able to grow as fast as US green tech company.
Thats a big FALSE. Actually most of the green tech is not from America. Out of the top 10 wind turbine manufacturers, GE Energy is the only one from the US. Market share of wind turbine manufacturers, 3 companies are from China Vestas (Denmark) 12.5% GE Energy (United States) 12.4% Sinovel (China) 9.2% Enercon (Germany) 8.5% Goldwind (China) 7.2% Gamesa (Spain) 6.7% Dongfang (China) 6.5% Suzlon (India) 6.4% Siemens (Denmark / Germany) 5.9% REpower (Germany) 3.4%
While only 2 photovoltaic cell companies in the top 10 are from the US. Most of these are from China. 1100.0 MW First Solar 704.0 MW Suntech 595.0 MW Sharp 586.0 MW Q-Cells 525.3 MW Yingli 520.0 MW JA Solar 400.0 MW Kyocera 399.0 MW Trina Solar 397.0 MW SunPower 368.0 MW Gintech
Your data actually proved my point. May be I didn't put it right. What I meant is that China doesn't have the capability to replace US as green tech leader if CNY appreciates. Yingli's 525.3 MW is only half of First Solar 1100 MW. The only reason China has a lot of market share is because of cheap labor and rare earth not sustainable tech leadership. Once the CNY appreciated 40% like Obama wanted, a lot of these Chinese companies will lose their competitive advantages. Because why would you pay more to get less MW?
you are an idoit.... We are already in many ways the Green tech leader compare to America... do some research under solar and wind energy. We also have lots of collaboration with Europe in join adventure or simply buy out.
Search Goldwind, a recent listed chinese wind firm who's tech advantage out pace GE.
I am not even going to go into the Obama thing, but please go to Econ class and travel a bit during your summer...
How does my data prove your point. Out of 20 companies, 2 of them are US firms. Your argument for first solar, which is the dominant name in that sector. BUT has been losing market share year-over-year, is the same argument I could make for Vestas, albeit on a much larger scale. The only reason GE Energy is up there is because it is not a true start-up, but buys early stage companies with it's crazy parent companies balance sheet and financing.
(Ari Gold voice)
Do you read the Times? No? Well I do, and you know what it says? It says you don't know what the FUCK you are talking about!
(/Ari Gold voice)
The end.
^^^I'm afraid your going to have to back this up with a source, my dear friend
I know this I just couldn't think if a dignified response
Stop looking at solar. Start looking into communication companies. The other month China's scientists came out with a type of communication signal using a primitive form of atom teleportation that is impossible to be decrypted or eavesdropped on by third parties.
Entourage references aside, the problem with wind is that it lacks the efficiency and cost competitiveness of solar. Namely, 1) it requires a constant stream of wind to power the turbines, and 2) people don't live where the wind blows, creating extra $$$ for distribution. In contrast, solar lets you generate and consume energy in virtually any location which opens up huge commercial opportunities by providing a market for both the major energy players looking for scalability, and the home-end users looking to implement the technology themselves(substitute roofing etc). Add to that the declining production costs - was around 50c / kwh in 95 and is now around 20c / kwh (maybe even less) - and I think it will kick winds ass over the next 10-15 years. Although I do agree that the US needs to get its shit together if it wants to catch up to Europe and Asia.
The only reason I think we may be able to replace China is that we have continued innovation, our government likes to throw around money and we can subsidize this industry more without causing any type of bubble, and the highest cost to these companies is not labor, but cost of the actual good, which can be greatly diminished through improved efficiency and better workflows.
I'm on the Jake Moore Bandwagon
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