Wednesday, October 19, 2011

Chinese Trade Practices Ripped













A coalition of seven U.S. manufacturers of solar cells and panels filed the complaint in Washington D.C. asking the federal government to take action against Chinese manufacturers who they accuse of dumping product in the American market.

SolarWorld AG’s U.S. unit filed a complaint with the U.S. International Trade Commission in Washington.

SolarWorld said it will be joined by other U.S. solar companies. The other six companies of the Coalition for American Solar Manufacturers have so far chosen to remain anonymous. The coalition was formed because members say business has been damaged by cheap imports from China.

The news comes at a time of maximum impact, when 20,000 people, including many from Chinese companies, are gathered in Dallas for the annual Solar Power International conference.

The cases allege dumping margins in excess of 100 percent as well as massive subsidies.

“Artificially low-priced solar products from China are crippling the domestic industry,” said Gordon Brinser, president of SolarWorld Industries America, based in Hillsboro, Ore. “As the strongest and most experienced U.S. producer, SolarWorld is leading the effort to hold china accountable to world trade law.”

The petitions allege that the Chinese government, through state-controlled financial and utility institutions intermingled with its solar manufacturing industry, has deployed land grants, contract awards, financial breaks and supply chain subsidies to unfairly price exports.

SolarWorld in September laid off 186 workers in California and consolidated manufacturing operations into its Oregon hub.

The elephant in the room has emerged for the solar industry.

The industry has been quick to trumpet the news that solar panels have dropped by 60 percent in the past three years but is extremely reticent to discuss one of the alleged causes raised by the complaint – dumped imports.

The U.S. Commerce Department has 20 days to respond. If it takes up an investigation, one would be completed in four to six months.

Source:http://www.renewablesbiz.com/article/11/10/chinese-trade-practices-ripped

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