Thursday, June 12, 2008

Chinese solar and the Olympics

China is facing a lot of criticism for pollution and its environmental policy and you can bet that this former communists government will do what it does best to fix it: propaganda.

The easiest way for a country to appear green is to use alternative energies. If we really want to stop global warming, we would have to make sacrifice, but good luck forcing your people not to drive their cars anymore. Instead you can mandate that you use 10% alternative energy (that's being generous) and get away with using the other 90% of it on fossil fuels.

Solar gives you the perfect appearance of actually doing something for the environment, without actually doing anything meaningful. It is perfect for a country who needs to develop rapidly which requires fossil fuels, while still satisfying the international community.

China will promote its alternative energies all throughout the Olympic games this summer. It will probably display solar panels at its opening ceremony and give every opportunity to show off its status of being the #1 solar producer.

For stocks, this could mean that Chinese solar will be hyped up this summer as all these new buyers start coming in after seeing it on TV.

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