The U.S. Export-Import Bank released a statement Wednesday touting its $9 million direct loan that helped MiaSolé, a California-based solar panel manufacturer, export its products to an Indian company.
The announcement is somewhat misleading, because although the release calls MiaSolé a “California company,” it is in fact owned by the Chinese.
Ex-Im is already in hot water over accusations that public data offered by the Ex-Im Bank does not reflect its actual work. Critics argue that information gap prevents the public from seeing whether it is fulfilling its congressional mandate. Wednesday’s MiaSolé announcement, to those critics, is the latest example of a lack of transparency within the Ex-Im Bank.
While MiaSolé does in fact have a factory in Santa Clara, California, the company is owned by Hanergy, a Chinese green energy giant that purchased the company late last year. According to the Associated Press, MiaSolé was launched as a green California startup in 2001, but a flood of low-priced supply from Chinese competitors pushed the company towards failure.
From the AP:
“The acquisition reflects a growing trend for Chinese companies, flush with cash from the country’s boom, to speed their development by acquiring foreign technology and brands in industries from computers to cars to tourism.”
The Export-Import’s Bank financing has tossed a life-line to MiaSolé, which announced this week it is hiring an additional 200 employees. However, as part of the purchase agreement, Hanergy promised not to lay off any MiaSole employees for 12 months after the deal’s closing date.
Regardless, it is quite misleading when the Bank says that it is investing in a California company. While anything that leads to new jobs is applaudable, Hanergy – a Chinese company – is raking in the profits.
