- American guy makes a living working at American solar panel manufacturer.
- Chinese guy has built a 50 employee company manufacturing solar panels.
- Chinese government says it may – just may – stop giving subsidies to Chinese solar panel consumers.
- Chinese consumers stop buying solar panels.
- Chinese guy has to fire half of his 50 employees AND has to cut his prices by 25% in order to make Chinese consumers purchase solar panels again.
- Likewise, price of solar panels goes down 25% everywhere in China.
- China = biggest manufacturer and market for solar panels in the world.
- Price of solar panels goes down 25% in the world.
- American guy – with 450 of his engineer colleagues - loses job because American solar panel manufacturer has to cut prices 25% in order to compete with Chinese solar panels, but can’t, and has to close plants all over America.
- Finally, Chinese government decides NOT to stop giving subsidies (remember, it was just a rumor).
- But prices do not climb back.

The story of China’s rise in solar panels illustrates the profound difficulties the country presents to Mr. Trump, or to any American president. Its size and fast-moving economy give it the ability to redefine industries almost on a dime. Its government-led pursuit of dominance in crucial industries presents a direct challenge to countries where leaders generally leave business decisions to the businesses themselves.

But economists and business groups warn that China’s industrial ambitions have entered a new, far-reaching phase. With its deep government pockets, growing technical sophistication and a comprehensive plan to free itself from dependence on foreign companies, China aims to become dominant in industries of the future like renewable energy, big data and self-driving cars.