Cheap Chinese solar panels are a blessing for Europe, not a curse

Costly attempts to rebuild domestic production would defy economic logic

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Final production at Meyer Burger's solar module factory in Freiberg, Germany in March: Solar manufacturing in the country has declined alongside government subsidies.  © Reuters

Frederick Kliem is managing director of Episteme Consultants, a Singapore-based ESG advisory company, and an adjunct fellow and lecturer at the S. Rajaratnam School of International Studies at Nanyang Technological University.

The announcement by Switzerland's Meyer Burger earlier this year that it would close its solar photovoltaic module factory in Germany and shift production to a new plant in the U.S. elevated European anxieties about the quickening demise of the continent's solar sector.

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