US-China solar dispute intensifies

• 10 years ago (2014-06-07)
• Junior Isles

Asia 892 North America 1021 Renewables 776

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The US has moved to close a loophole that allowed Chinese solar manufacturers to avoid anti-dumping and anti-subsidy tariffs by assembling their products outside China.

The US Department of Commerce said it will seek to impose duties ranging from nearly 19 per cent to 35 per cent on crystalline-silicon photovoltaic products as long as their key components come from China. Chinese solar products assembled and shipped from other countries have not been subject to US anti-dumping and anti-subsidy tariffs. The new duties require final approval from both the Commerce Department and the US International Trade Commission.

Beijing said the move would worsen trade relations between the two countries, noting that it was “strongly dissatisfied” with the decision.

The ruling by the US “is an abuse of trade remedies, has an obvious hint of trade protectionism and will inevitably lead to the escalation of trade disputes between China and the US”, the Ministry of Commerce said in a statement on its website.

The US initially imposed tariffs on Chinese-made solar cells in 2012 after it determined that Chinese manufacturers received illegal government subsidies and dumped goods. China retaliated a year later by announcing its own tariffs on raw materials from the US and South Korea that are used to make solar panels.