Are we left behind in the ‘green production’ revolution?

Carolyn Bartholomew, the "moderate" chair of the bipartisan U.S.-China Economic and Security Review Commission, gave a pessimistic review: No movement on exchange. No concessions on the subsidies the Chinese government gives to its "strategic" industries (including "green production"). The commission was established by Congress to assess "growing economic and security concerns between the U.S. and China."

Also commenting was Clyde Prestowitz, president of the Economic Strategy Institute, a moderate globalization advocate of what he calls "smart globalism" - free markets without cartels and excessive speculation.

The number one message from all is this: China has a national industrial strategy and policy. We do not. And we better come up with one soon.

With the exception of the exchange rate controversy, most objections raised against China are the subsidies it fosters in promoting areas of production where it wants to lead, such as in all areas of "green production and research."

The current controversy over whether to import Chinese-built wind turbines into stimulus- or TARP-subsidized U.S. alternative energy projects is just one example of the advantage strategic planning has given those nations practicing it in the area of environmental technologies and their integration into national infrastructure planning. After pressure from public outrage over taxpayer funds not being used to build domestic wind turbines, the private equity firm and its Chinese partner building the wind farms reversed course and decided to build a manufacturing plant in the U.S.

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