Solyndra failed on bogus technology, not on China pre-fixing the market. Solyndra was effectively claiming that lower efficiency thin film panels would somehow magically work great when formed in tubes. Calculate the physics, and it is obvious that there is no energy gain, only additional cost. The investment decision was broken, as any competent analyst should have done the simple math to figure this out. Solyndra's own published numbers, cost per W figures, for example, which were non-competitive to start with. Their cost was way above marginal cost of normal panels with higher efficiency, so electricity could not have been produced profitably with their panels, according to their own projections.
This "China subsidy" card is one I have hard time understanding. If we get the benefit, why it is a problem? Europeans first sold Chinese and other countries solar panel plants (100+ plants claimed by one European company alone), which were efficient and could produce good quality panels for low cost. Then we buy the panels they make in those factories for zero (or claimed negative) profit, essentially Chinese subsidizing our economy again. In addition, this will be net energy gain for us. Panels produce more energy than making them consumes, so we get energy from Panels the Chinese effectively paid for us, avoiding some need of import energy or generate energy from fossil fuels. This is perfect colonialism, sell them tools and reap benefits of those tools, pulling money in three ways. We should do more of this.
Chinese may copy and import technologies we sell to them, but by the time they are capable to high quality and competitive technology, they will no more be cheap labor, and the cost levels will not be that different any more. China will be on par, and highly competitive, and they will be part of innovation, but that is unavoidable. No amount of protectionism will avoid it, rather it will protect us from improving efficiency and competitiveness. Japan is a good example of this, they took a their position in the world market, but are now economically in similar position as most western countries, with no more competitive advantage than efficiency or innovation allows. People cost and standard of living has mostly equalized already. The worst thing West can make to our own standard of living is to be inefficient and stop innovating and taking risks.