The U.S. – China Wind Power Dispute

The U.S. – China Wind Power Dispute

written by Roy C. Nelson, fl. 2013 (Glendale, AZ: Thunderbird Global School of Management, 2016, originally published 2015), 4 page(s)

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Abstract / Summary
In 2010, China's rapid development of wind energy, and specifically, its policies to promote wind turbine manufacturing, had resulted in significant loss of market share in the wind turbine market in China for U.S. and other foreign manufacturers. Although China was clearly violating WTO rules with its trade policies, U.S. and other firms were reluctant to bring a dispute to the WTO for fear of retaliation on the part of the Chinese government in the form of loss of access to the Chinese market. As a result, the United Steel Workers of America (USWA) trade union brought the dispute the WTO. Because the trade violations were so clear, China backed down even before the dispute could get out of the first, 'consultations' phase of the WTO dispute settlement process. This case can be used in a course on States and Markets in the Global Economy, Principles of Global Management, Global Business Environment, or Foreign Trade to demonstrate how the World Trade Organization (WTO) solves trade disputes -- both in theory and in practice. It can be used in a course on the U.S. business environment to demonstrate U.S. trade policy. It can be used in a course on the business environment of Asia to demonstrate China's role in the global economy.
Field of Interest
Business & Economics
Author
Roy C. Nelson, fl. 2013
Copyright Message
Copyright © 2016 Thunderbird School of Global Management, a unit of the Arizona State University Knowledge Enterprise.
Content Type
Case study
Duration
0 sec
Format
Text
Original Publication Date
2015
Page Count
4
Publication Year
2016
Publisher
Thunderbird Global School of Management
Place Published / Released
Glendale, AZ
Subject
Business & Economics, Social Sciences, International Business, International trade, Trade policy, Renewable energy sources, Engine, Turbine, and Power Transmission Equipment Manufacturing, Negócios Internacionais, Negocios Internacionales, United Steelworkers of America, World Trade Organization, China
Keywords and Translated Subjects
Negócios Internacionais, Negocios Internacionales

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