In tit-for-tat, China probes US trade
By Richard Fu |
November 26, 2011, Saturday
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Print Edition
Print Edition
CHINA has opened a trade barrier investigation into US policy and subsidy support for renewable energy, in reaction to an American anti-dumping and countervailing duty probe into Chinese solar products that could result in huge duties.
The Ministry of Commerce said yesterday its probe was based on an application from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products and the New Energy Chamber of Commerce in the All-China Federation of Industry & Commerce.
The two organizations argue the policy supports and subsidies in several US states violate World Trade Organization rules and impact Chinese exports of such products as solar cells and wind turbines to America.
The investigation will cover the stimulus programs from the states of California, Washington, Massachusetts, Ohio and New Jersey, the ministry said, adding the products to be covered will include wind, solar and hydropower equipment.
The probe is supposed to be completed by May 25 next year, and could be extended by another three months, the ministry said.
The move came after a US decision earlier this month to open an investigation into whether Chinese firms have been dumping solar cells in the US aided by "unfair state subsidies" received at home, which could lead to the Americans imposing steep duties.
A spokesman for China's Commerce Ministry early this month said the potential duties, which are opposed by buyers and installers of solar systems and environmentalists in the US, could hurt cooperation in the clean-energy sector between the two largest energy users.
Two Chinese companies, LDK Solar and JA Solar Holdings, have said they are considering moving some production operations out of China to avoid paying the potential tariffs.
In a separate move, an alliance of Chinese solar firms also said this week that some US companies are dumping polysilicon in China. They plan to file a petition with the Ministry of Commerce on US polysilicon imports because an influx of the raw material used in solar cell manufacturing has lowered prices and harmed China's own suppliers.
The US probe comes at a time the solar power industry, for which China is the top equipment maker, has been battered by low demand and low prices for solar panels. Demand growth is slowing in Europe, the largest regional market, amid sovereign debt crisis there.
Some major Chinese solar power companies posted third-quarter losses as they slashed prices and liquidated inventory to deal with declining shipments, and forecast weak demand during the rest of the year.
The United States was a significant net exporter of solar products in 2010, including to China, according to US industry group Solar Energy Industries Association. Total US exports of solar energy products were US$5.6 billion, with net exports totalling US$2 billion, Reuters reported.
US imports of solar panels from China rose to US$1.5 billion in 2010 from US$640 million in 2009.
The Ministry of Commerce said yesterday its probe was based on an application from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products and the New Energy Chamber of Commerce in the All-China Federation of Industry & Commerce.
The two organizations argue the policy supports and subsidies in several US states violate World Trade Organization rules and impact Chinese exports of such products as solar cells and wind turbines to America.
The investigation will cover the stimulus programs from the states of California, Washington, Massachusetts, Ohio and New Jersey, the ministry said, adding the products to be covered will include wind, solar and hydropower equipment.
The probe is supposed to be completed by May 25 next year, and could be extended by another three months, the ministry said.
The move came after a US decision earlier this month to open an investigation into whether Chinese firms have been dumping solar cells in the US aided by "unfair state subsidies" received at home, which could lead to the Americans imposing steep duties.
A spokesman for China's Commerce Ministry early this month said the potential duties, which are opposed by buyers and installers of solar systems and environmentalists in the US, could hurt cooperation in the clean-energy sector between the two largest energy users.
Two Chinese companies, LDK Solar and JA Solar Holdings, have said they are considering moving some production operations out of China to avoid paying the potential tariffs.
In a separate move, an alliance of Chinese solar firms also said this week that some US companies are dumping polysilicon in China. They plan to file a petition with the Ministry of Commerce on US polysilicon imports because an influx of the raw material used in solar cell manufacturing has lowered prices and harmed China's own suppliers.
The US probe comes at a time the solar power industry, for which China is the top equipment maker, has been battered by low demand and low prices for solar panels. Demand growth is slowing in Europe, the largest regional market, amid sovereign debt crisis there.
Some major Chinese solar power companies posted third-quarter losses as they slashed prices and liquidated inventory to deal with declining shipments, and forecast weak demand during the rest of the year.
The United States was a significant net exporter of solar products in 2010, including to China, according to US industry group Solar Energy Industries Association. Total US exports of solar energy products were US$5.6 billion, with net exports totalling US$2 billion, Reuters reported.
US imports of solar panels from China rose to US$1.5 billion in 2010 from US$640 million in 2009.
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