Based on the information provided in the passage, we can confirm that the most likely reason that the United States government objects to the Chinese subsidies is that American manufacturers face competition from cheaper Chinese-
made solar panels, because the subsidies lower Chinese production costs.
What are subsidies?
- Subsidies are Government provided funds intended to help businesses.
- These are often given to manufacturers.
- Subsidies allow manufacturers to lower production costs and serve to keep prices low and controlled.
How this affects American Economy
- This has an impact on the American economy due to the fact that Chinese products arrive in the United States at much lower prices.
- This causes a dangerous situation for American-based manufacturers that cannot compete with the lower prices.
- For this reason, the Government applied a tax to all imported Chinese goods from manufacturers that have received subsidies.
Therefore, we can confirm that the United States Government objects to Chinese subsidies due to the fact that they lower production costs for Chinese manufacturers which allows them to sell at prices that endanger American manufacturers.
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