In recent decades, the United States has increasingly shifted its manufacturing base overseas, particularly to China, in a quest for cost efficiency and lower production costs. While this strategy has been celebrated for reducing domestic emissions, a deeper analysis reveals a more complex picture, both environmentally and economically.
While we here at AgroWars do not see atmospheric CO2 as the bogeyman it is often made out to be, carbon emissions have been the big focus of almost every environmental reform. The U.S. has significantly cut its carbon footprint by moving manufacturing to countries like China. While American soil might see fewer smokestacks, the global atmosphere doesn’t differentiate between emissions based on their origin.
China, now the world’s manufacturing hub, relies heavily on coal for its energy needs. Coal, one of the most carbon-intensive fuels, powers much of China’s industrial output. The increase in manufacturing in China has thus led to a surge in coal consumption, which, in turn, has dramatically increased worldwide CO2 emissions.
China approved new coal power worth 50% of the entire US coal fleet in 2023 alone.
Anyone that talks about emissions cuts or net zero like they are going to happen, be meaningful or be anything but pointless and expensive is an absolute idiot.
Climate reality: Emissions are… pic.twitter.com/6KwtFrskMF
— Steve Milloy (@JunkScience) February 22, 2024
Not only are global emissions potentially higher due to the inefficiencies and higher carbon intensity of China’s coal-based manufacturing, but the U.S. also loses control over the environmental standards applied in production. China’s environmental regulations, while improving, still lag behind those in the U.S., leading to greater pollution per unit of production. While we have to pay a premium for going “green” in America, China’s industry is booming from cheap coal power.
China has 127 new coal-fired power plants in the pipeline; Indonesia , 52; India, 27; Japan, 22; and Vietnam , 17; and we are happy to export $70 billion of our coal so that they can have cheap electricity but deny that to Australians. #Auspol2023
— Sid Dowling (@shoebil57672266) January 22, 2023
Some of the coal China is using is even being shipped from the United States and Canada.
Canada's "dirty secret" is just south of NDP Vancouver where the largest coal export terminal in North America sends cheap low-grade US coal (sent on miles long rail cars spewing coal dust in Canada) – to China to burn 🔥 – but you must buy a heat pump! 🤡 #bcpoli #Surreybc https://t.co/ifX1zD4VqJ pic.twitter.com/wf69iP34XQ
— 🇨🇦Schtev🍌 (@schtev69) February 4, 2024
People in the West are starting to see how this game has been rigged against them.
The United States has even outsourced the manufacturing of much of its “green technology.” Under Biden’s Green New Deal initiatives, there has been a significant push towards renewable energy, particularly solar power. However, a substantial portion of the solar panels installed across the U.S. under these initiatives are manufactured in China. This reliance on Chinese manufacturing for solar technology highlights a critical issue in the global supply chain of renewable energy technologies.
China in Command of the U.S. Domestic Solar Panel Manufacturing Industry
Despite the Green New Deal’s aim to foster domestic green jobs and reduce carbon footprints, the economic reality has led to a scenario where the U.S. imports a majority of its solar panels from China, where production costs are lower due to economies of scale, government subsidies, and less stringent environmental regulations. The same can be said for electric vehicles, as many of the components are made in China and their electricity often comes from coal-fired plants.
This situation underscores the complexities of global trade in the context of environmental goals and raises questions about the true ‘greenness’ of the energy transition when the production of these technologies contributes significantly to emissions elsewhere, particularly in regions heavily reliant on coal for energy, like China.
“The U.S. commitment comes despite China unleashing a massive expansion of coal power generation last year… China already accounts for about 27% of total global emissions, triple the total of the U.S.”
While we joust at windmills, China will build its energy strength. pic.twitter.com/I39b2XfQiV
— James Woods (@RealJamesWoods) December 2, 2023
Economically, the offshoring of manufacturing has been disastrous for the American working class. The loss of manufacturing jobs has been well-documented, with a steep decline in manufacturing employment. This isn’t just about numbers; it’s about the hollowing out of communities that once thrived on industrial work. The argument for offshoring often revolves around the idea of comparative advantage and efficiency. However, this efficiency comes at the cost of American jobs, leading to economic displacement, increased unemployment in certain sectors, and a decline in the middle class. The jobs lost are not just blue-collar positions but also a range of associated jobs in logistics, management, and ancillary services. The economic cost of offshoring in terms of job losses and community disintegration in America is profound.
We must reevaluate global trade policies, emphasizing not just economic costs but also the true environmental and social costs. Bringing back some manufacturing, investing in efficient and environmentally-friendly technologies at home, and reskilling the workforce could be steps towards a better future for Americans and our environment. The practice of offshoring reveals that what might seem like a win for one’s balance sheet or environmental report can indeed be a loss for the planet and its people.