Microeconomics Coursework Example | Topics and Well Written Essays - 250 words

Microeconomics - Coursework Example The seven companies claim that China government avails subsidies to its enterprises in an effort to increase their sales in the US market. According to EU Prosun, there is substantial proof that China is dumping solar panels in both the US and EU markets (1). Without any doubt, Chinese government policies demonstrate that companies are selling their solar panels at a price below the production cost. The contention has its origins in a surge of cheap Chinese solar panels that made several US companies go bankrupt. The US government has actually taken some bold steps to reduce the inflow of cheap solar panels from both Taiwan and China. The decision is part of the long battle between the US and Asian markets. Statistics shows â€Å"both Taiwanese and Chinese governments exported solar panels and related products to the US worth $2.15 billion† (Mauldin 1). Germanys SolarWorld AG, a unit based in the US, brought the most recent case. The company claims to be a casualty of both dumping and unreasonable endowments from China. As a result, these practices harm the companys ability to increase its sales in the US markets. In a different turn, â€Å"the US government has additionally blamed Chinese hackers for infiltrating into computer systems of SolarWorld with an aim of picking up competitive advantages† (Mauldin 4). Against all odds, both the Taiwanese and Chinese governments failed to defend itself on some specific inquiries (US Department of Commerce