America is currently bent on promoting its green industry. But the firms of this industry are finding it difficult to compete against their Chinese counterparts even with the support of the government. The United States currently accounts for a mere 1.6 billion dollar of the 29 billion dollar market of solar panel and their main competitors the Chinese firms are applying aggressive policies to keep their dominance intact. The congress was so concerned regarding this that it recently implemented a regulation binding the Pentagon to buy only U. S. made solar products.

The Chinese company named the Wanxiang International who produces auto parts are the biggest in the U. S. and they have an 8 billion revenue worldwide, providing employment to over 5000 people in the states along with investment in more than twenty American companies. This was a point that was mentioned by Hu Jintao the Chinese president who indicated that China provides both cheap goods and jobs to American people.

The issue that has currently become most significant in the economic relationship between Beijing and Washington is the fact that the U. S. administration feels that Beijing is unfair towards the relationship. The main reason behind such feeling is the closed economical approach by China under which they seem less inclined to open their markets to U. S. products. Not only has the piracy carried on in China also hurt the U. S. software firms.

Certifying the above are the facts that till 2008 U. S. capital investments in China has been around the 50 billion dollar mark while they have provided employment to roughly 10000 workers but in response the Chinese investment lie low at only 5 billion dollars. But recently, the jump in Chinese investment has been incredible. They are currently at 12 billion dollar. Daniel Rosen said that though most people are asking the reason behind low Chinese investments the fact is that the investments from China are on the rise.