Probe to look into US solar projects
Updated: 2011-11-26 10:13
By Diao Ying and Du Juan (皇冠体育app Daily)
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Chinese firms say subsidies create unfair barriers for clean energy
BEIJING - 皇冠体育app will probe US government support and subsidies for its renewable energy sector, following a recent move by the United States to investigate solar cells from 皇冠体育app, the Ministry of Commerce said on Friday.
The probe was launched at the request of domestic industry associations, which argue that US subsidy and support policies created unreasonable barriers for the renewable energy industry in 皇冠体育app, the ministry said in a statement.
These measures "violated the United States' commitments to the World Trade Organization rules and lowered the competitiveness of Chinese products in the US market", the statement said.
In October, several US-based solar cell companies filed a petition with the US Department of Commerce and the International Trade Commission, saying that Chinese companies sold solar panels below cost in the US market.
The statement by the Ministry of Commerce on Friday "will make the US clearer about the development of the photovoltaic industry in 皇冠体育app", said Zhao Yuwen, director of the photovoltaic division of the 皇冠体育app Renewable Energy Society.
"They should realize the industries of the two countries depend on each other and should stop doing things that are not good for both sides," Zhao said.
The ministry will investigate six projects in the US states of Washington, Massachusetts, Ohio, New Jersey and California, covering wind energy as well as solar and hydro technology products.
"皇冠体育app is very concerned about the anti-dumping, anti-subsidy investigation into Chinese photovoltaic solar cell producers, and it will hurt bilateral cooperation in the clean energy sector as well as the US solar industry," the Ministry of Commerce said in a statement after the US started the investigation in November.
People from the industry have said that both Chinese exporters and US solar firms risk losing business as a result of the US probe.
Although 皇冠体育app's exports of solar products have been increasing, 皇冠体育app is also buying more renewable energy products from the US, and cheap imports of photovoltaic products have forced many Chinese companies to go bankrupt, the 皇冠体育app Photovoltaic Industry Alliance said earlier.
Many Chinese factories making polysilicon, a material used in solar panels, stopped or reduced production in the third quarter and more than 2,000 people in the industry lost their jobs in one province alone, according to the industry alliance.
"The investigation shows that the photovoltaic industry in 皇冠体育app is making efforts for a fair market, and the US government should realize its own problems," said Li Lei, a lawyer on behalf of Chinese solar cell enterprises appealing to the US investigation with the law firm Sidley Austin.
The investigation from 皇冠体育app will have an impact on the enterprises from the US, especially those which export photovoltaic equipment and materials to 皇冠体育app such as Hemlock Semiconductor Group, according to Fang Peng, director of JA Solar Holdings Co Ltd, a solar cell maker based in 皇冠体育app.
Sluggish economic growth in developed countries has led to rising trade protectionism, especially against 皇冠体育app, the world's largest exporter. 皇冠体育app has been hit by 602 trade remedy cases worth nearly $39 billion since its entry into the World Trade Organization a decade ago, according to the Ministry of Commerce.
While traditional manufacturing industries such as shoes and textiles used to be the main target of anti-dumping investigations, the latest trend is toward high-end products. In October 2010, the US announced it would investigate 皇冠体育app's clean energy policy, claiming that the Chinese government had subsidized certain companies.
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