Why PROTECTIONISM works. Case in point: China.

[Selatius]

8. China is only cornering the market on solar because the gov't heavily subsidizes their firms.

The reason why production capacity is driving down the prices of solar panels is because the Chinese are throwing money at Chinese firms to expand production and crush competition. Many of these loans are offered at very low interest.

If Germany wants its firms to compete, they're going to have to do the same thing and offer lots of low interest loans with generous terms to its domestic firms.

Another option is imposing tariffs on imported solar panels from China.