China is leading the way in renewable energy. Using policy and financial tools developed in the USA and which we are now shunning China expects to spend nearly $300 Billion by the end of 2015.
China has good reason. They have grown their economy at a break neck pace, minimizing regulation in order to deploy power plants quickly in order to ‘feed the machine’ so to speak. The result is terrible pollution. And it in addition to hurting its people it is hurting this important revenue source, tourism.
Now they are turning the corner with a commitment to clean it up. They will get the double benefit of clean-up and becoming a dominant player in what will likely be the largest industry in the world in a decade, renewable energy.
China has unabashedly diverted resources to critical infrastructure and / or strategic industries in order to assure a dominant position in these industries. This is particularly true in energy and it has given them a dominant position. We would be well served by rethinking Solyndra and recognizing it as bad implementation of a useful program rather than the more popular interpretation that loan guarantee programs are inherently not useful.
While China thrives and systematically works to become the worlds dominant economy, the US flounders. Like the proverbial crab in the slowly heating pot we are in a potentially lethal state of decline.