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July 29, 2014

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China slams US over new penalties on solar cells

BEIJING yesterday criticized Washington for approving new penalties on Chinese solar products, saying the move will hurt the industry in both countries.

The US Commerce Department on Friday levied anti-dumping duties of up to 165 percent on solar panels and cells from China following a preliminary finding that they were being sold in the US at unfairly low prices.

The action, which came after the US imposed anti-subsidy duties last month, is the latest in a long-running spat between the two nations over the solar power sector. According to a statement by China’s Ministry of Commerce, the US disregarded the facts and applied contradictory “country of origin” trade rules in its decision.

It labeled the US action as an abuse of trade remedy measures.

“The frequent adoption of trade remedies cannot solve the problems in the development of the US solar industry,” the statement said, adding that it hopes the US will “end the investigation procedures as soon as possible so as to create a good environment for competition in the global solar industry.”

The action was taken in response to a case brought by the US unit of SolarWorld AG, which sought to close a loophole that it alleged allowed Chinese firms to evade duties on solar cells imposed by the US in 2012 by shifting production to plants outside the Chinese mainland, such as Taiwan. The US also levied anti-dumping duties of up to 44 percent on Taiwan’s products in its preliminary ruling.

The US solar industry is split on the ruling. While equipment manufacturers want protection from Chinese competition, installers want low-cost products, regardless of origin.




 

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