He's concerned that the U.S. doesn't produce enough and will have to import them from China:
... although consumer demand for solar power has incrementally increased here, it has not been enough for anyone to have Applied Materials — the world’s biggest solar equipment manufacturer — build them a new factory in America yet. So, right now, our federal and state subsidies for installing solar systems are largely paying for the cost of importing solar panels made in China, by Chinese workers, using hi-tech manufacturing equipment invented in America.
...
In October, Applied will be opening the world’s largest solar research center — in Xian, China. Gotta go where the customers are. So, if you like importing oil from Saudi Arabia, you’re going to love importing solar panels from China.
First off, I thought Friedman was a big free trader. Shouldn't he consider importing them from China to be a good thing?
The issue here, from what I can gather from his piece, is that China and others are subsidizing solar panels more than we are. This is an area where, it seems to me, free traders are split into different groups. Some argue that we should be happy that others are subsidizing and thank them for the cheap products. Others say we should challenge their subsidies -- which, they would say, distort trade -- either through CVDs or directly at the WTO. Friedman seems to be saying that the U.S. should match, or surpass, the subsidies given by others, so as to ensure that solar panel production happens in the U.S. I'm not quite sure how he thinks that fits in with his general support for free trade.
One final question: Given his concern about China dominating the solar panel market, but his support (I assume) for cheap solar panels, I wonder how he feels about the allegations of solar panel dumping, talked about here, here and here? Which is more important, cheaper solar panels or helping U.S. solar panel production?
