China’s fractious trade relations with the US and its allies are strengthening diplomatic and commercial ties between the two regions, said Ben Simpfendorfer, a Hong Kong-based partner at the management consulting firm.
“China’s commercial relations with the Middle East are experiencing a renaissance,” he said in an interview. “The past few years have been transformative. It’s no longer a story of simply trading oil and consumer goods, it’s now a much broader and deeper relationship.”
Trade data over the past six years underlines the shift. China and the Middle East traded US$507.2 billion of goods in 2022, according to customs data, double the level in 2017. Trade with the Middle East rose 27 per cent in 2022, surpassing the growth with Southeast Asian nations (15 per cent), the European Union (5.6 per cent) and the US (3.7 per cent).
“What we are seeing is that Chinese electric vehicle (EV) makers are increasingly investing in other markets,” Simpfendorfer said. “They are beginning to open up factories in the emerging markets, [while] also looking at options in Europe or the US. That is an encouraging dynamic, because it does help to ease trade tensions and support employment growth in other markets.”
China’s energy trade with Middle East to surge in light of Iran-Saudi deal: UBS
China’s energy trade with Middle East to surge in light of Iran-Saudi deal: UBS
However, Simpfendorfer warned that trade tensions between China and the West will persist and could worsen soon, especially after the US presidential election. Exports will remain under pressure over the next few years, and worries about overcapacity in China will remain on the front pages, he added.
Policymakers in the US and Europe have raised concerns about excess production of EVs, batteries, and solar panels, among others. If China continues to offload its excess output in overseas markets, Western firms could be forced to slash prices and cut jobs, they have warned.
During her trip to China earlier this month, US Treasury Secretary Janet Yellen sought to formalise discussions about excess capacity in China’s EV sector. Chinese officials pushed back against the move, saying that local exporters have already “fully responded” to those concerns.
Despite growing trade tensions, China will remain the world’s top manufacturing hub and a major exporting country, due to its sheer size and ability to innovate, Simpfendorfer said.
“There is no simple replacement for China’s manufacturing industry,” he added. “It’s difficult to replace its scale, efficiency, speed, and increasingly, its innovation, whether that is battery storage or new EVs, which will remain compelling for other countries around the world seeking to import these products.”
A homeowner’s experience with an HOA showed the pitfalls associated with the often intrusive, obtrusive organizations.
Their quandary, which they shared with r/solar on Reddit, came up six months ago.
“My HOA in California has recently passed a rule requiring any owner who wishes to put up a solar system to buy additional coverage for $1 million,” the poster wrote. “This is a townhouse complex with building units of 2-5 unit buildings with staggered roof lines separating the units.
“Given California’s law prohibiting HOAs from stopping solar systems, this HOA seems determined to make buying solar as painful as possible, including the removal of the panels at owner’s expense for the 10 year roof replacement. Their argument for the extra policy is that solar panels increase fire risk. This doesn’t seem to be in the spirit of California law. I’ve looked all over, but I can’t find anything that would justify this policy or anything about its legality. Does anyone know if this is legal or justified?”
The main issue, of course, was the meddlesome homeowners association. It could’ve made easy an environmentally friendly choice or helped smooth out associated wrinkles, but it created hassles to deter someone looking to reduce their dependence on dirty energy.
Still, many commenters agreed that it wasn’t a bad idea for the poster to be covered in case of a problem.
“When I got my system, the utility required $1m liability,” one wrote. “I got all upset that was going to make it not worth it. I think it added $4/month to my insurance.”
And even though the Golden State prohibits HOAs and local governments from creating unreasonable barriers to solar panel installation, it does appear to be within the law for HOAs to require insurance, at least in some cases.
The San Diego Union-Tribune reported in 2022 that the civil code “allows HOA rules to require compliance with health and safety and electrical codes” and added, “If the system is to be installed on a common area roof, the HOA can require proof of insurance.”
“Design flaws, component defects, and faulty installation generally cause solar rooftop fires,” though it’s “an extremely rare occurrence” for a solar system to spontaneously burst into flames, according to the Office of Energy Efficiency and Renewable Energy.
The new rule was a pain in the butt, basically, and that seems to be much of the reason for the existence of HOAs. Show me an HOA that improves quality of life and makes things easier for its residents, and I’ll show you dozens that have done the opposite.
They not only muck up the works for those who want to go solar but also throw wrenches in the plans of those who swap their water-wasting turf grass for native plants.
“It makes no sense,” one Redditor said of the HOA rule described on r/solar. “Solar panels are not inherently flammable. As long as the hardware is installed by a professional and inspected it’s perfectly safe. I’ve had Solar on my house for years. Plus a modern photovoltaic system has multiple emergency shut offs accessible from the outdoors.”
A Floridian noted their state had a similar law, and it cost them $14 annually.
“The hardest part was explaining to the insurance company what I wanted quoted,” they wrote.
It’s not always practical or even possible, but another commenter advised steering clear of the soul suckers: “I recommend everyone buying property to stay well away from HOA! They are evil and they ruin [people’s] lives!”
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Four-out-of-five MPs support making solar panels mandatory on all new-build homes, according to a YouGov poll commissioned by the MCS Foundation.
The survey found 83 per cent of Labour MP and 73 per cent of Conservative MPs polled believe solar panels should be incorporated into all new builds by 2025, while 61 per cent of those quizzed – 47 per cent of Conservatives and 77 per cent of Labour MPs – also agreed battery storage systems should come as standard.
Moreover, 56 per cent of surveyed MPs, including 43 per cent of Conservatives and 72 per cent of Labour MPs, agreed that heat pumps should incorporated into all new builds by 2025.
The poll comes as the Department for Levelling Up, Housing, and Communities continues to consult on how the government should deliver its new Future Homes and Future Buildings Standards with the consultation process set to close on March 6th.
The consultation document confirmed the government has found “no practical way” to simultaneously allow the installation of fossil fuel boilers while delivering significant carbon savings and “zero-carbon ready” homes.
As such, it does not expect gas, hybrid heat pumps, and hydrogen-ready boilers to meet the new standards, paving the way for a sharp increase in demand for heat pumps, district heat networks, and electric heating systems.
It states that new regulations and guidance will be published in 2024, with Standards coming into force the following year.
Today’s survey results came in the same week as the government launched a separate consultation on heat pump installation rules, which sets out plans to scrap regulations preventing people putting an air source heat pump within a metre of a property boundary.
The consultation on Permitted Development Rights for Air Source Heat Pumps closes on April 9th.
The MCS Foundation said the new regulations for new build homes present a key opportunity to boost renewable energy capacity in the UK and lock in low energy bills for homeowners.
“When it comes to constructing modern homes that are climate-friendly and cheap to run, building-in solar panels, batteries for energy storage, and heat pumps from the start is very clearly the way to go,” said David Cowdrey, director of external affairs at the MCS Foundation.
“It is very encouraging that such a clear majority of MPs back the principle of renewable energy for all new homes. The government now has a mandate to require a meaningful deployment of solar panels as well as battery storage on new-builds under the Future Homes Standard, and it must enact that as soon as possible.”
Chris Hewett, chief executive of trade association Solar Energy UK, argued that “everyone wins” from making solar power effectively mandatory for new housing.
“It means lower bills for newbuild homeowners and greater energy security for us all, plus progress towards net zero, through cutting reliance on pricey natural gas,” he said. “The policy would save newbuild homeowners between £910 to £2,120 per year, according to the government consultation, while pushing purchase prices up only marginally.”
YouGov’s polling comes off the back of a year in which heat pump installations across the UK grew by almost 20 per cent, with certified heat pumps operating in the UK now surpassing the 200,000 mark, MCS Foundation reported last month.
Moreover, 2023 heralded a record year for small-scale green energy and heat installations such as rooftop solar and heat pumps, with more than 220,000 installations registered overall in 2023.
However, the government is reportedly considering scrapping one of its key policies designed to build the market for heat pumps across the UK, in response to lobbying against the introduction of the Clean Heat Market Mechanism from fossil fuel firms and boiler manufacturers.
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