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December 5, 2011

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China says US solar ruling indicates trade protectionism

CHINA said it is "deeply concerned" about a preliminary ruling in the United States that trade practices by Chinese solar makers "are hurting" US producers and called the decision underscored a US inclination to trade protectionism.

Such protectionism measures would hurt bilateral trade and jeopardise mutual cooperation on new energy issues, the Ministry of Commerce said on its website.

Its statement came after the US International Trade Commission approved an investigation into charges of "unfair" Chinese trade practices in the solar energy sector, setting the stage for possible steep US duties and ratcheting up tensions with Chinas on the green trade front.

On Friday, the US commission voted 6-0 that there was a reasonable indication that SolarWorld Industries America and other US producers had been harmed by the imports or could have been.

The Ministry of Commerce said the decision was made without sufficient evidence showing the US industry had been harmed and did not take into account Chinese companies' arguments or opposition from US industries and other affected groups.

"China is deeply concerned about the decision, which does not tally with facts and highlights the United States' strong tendency for trade protectionism," it said.

Competitiveness

The commerce ministry said in the statement that China hopes the US will objectively analyze why some US solar panel companies lack competitiveness.

"The United States should avoid abusing trade remedies which will affect bilateral trade and mutually beneficial cooperation between China and US enterprises in the new energy sector," it said.

The American companies that filed the October complaint claimed that massive subsidies by the Chinese government enable Chinese producers to drive out US competition, and asked for tough trade penalties on Chinese solar imports.

The case has caused a split in the solar industry, with some US companies saying imports of Chinese solar panels have lowered prices, helping American consumers and promoting rapid growth of the industry in the United States.

Solar and other renewable energy technology has emerged as an irritant in China-US trade.

The two governments have pledged to cooperate in development of solar industry but accuse each other of violating free-trade pledges by subsidizing their own manufacturers.

Chinese solar manufacturers most affected by the petition include Suntech Power Holdings, Yingli Green Energy Holding and Trina Solar.

US imports of the solar products from China totaled US$1.5 billion in 2010, up from US$640 million in 2009.




 

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