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June 5, 2014

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China ‘strongly dissatisfied’ with US tariffs on solar panel imports

CHINA is “strongly dissatisfied” with the US decision to slap new anti-subsidy duties of up to 35 percent on Chinese solar panel imports, the Ministry of Commerce said yesterday.

The US Department of Commerce ruled in favor of the US unit of German solar firm SolarWorld AG, which brought the case alleging Chinese companies including Trina Solar and Wuxi Suntech Power have benefited unfairly from Chinese government grants, free land and discounted loans.

The preliminary duties range from 18.56 percent to 35.21 percent.

The case seeks to close a loophole that SolarWorld alleged helps its Chinese competitors evade duties on solar cells imposed by the US in 2012 by shifting production outside the Chinese mainland, such as to Taiwan. Cells are used to assemble panels.

China is “strongly dissatisfied” with the ruling, the ministry said in a statement, adding that the US had ignored the facts and applied contradictory “country of origin” trade rules.

The US had abused trade measures to protect its own industry and this will inflame trade tensions in the solar industry, the ministry said.

The duties will cut the price competitiveness of Chinese products in the US, analysts said, adding the impact could be limited for the Chinese industry because the US only accounted for 10 percent of China’s solar shipments in 2013.

Trina Solar, based in Jiangsu Province, slammed the unfounded US charges. It hopes to open a dialogue with the US government.

The duties will also hurt US solar companies that focus on installation.

“The ruling is a major setback for the entire US solar industry because it will immediately increase the price of solar power and cost American jobs in one of the fastest-growing sectors of the US economy,” the US Coalition for Affordable Solar Energy said in a statement.

The US is also set to make a preliminary decision by July 25 on the anti-dumping section of the complaint filed by SolarWorld on Chinese solar panel imports.




 

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