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A technician installs solar panels on top of a building at a residential area in Fuzhou, Fujian province, Oct 15, 2010. [Photo/Xinhua]
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BEIJING — U.S. probe into Chinese clean energy policies, dubbed Section 301, will harm the United States itself by revealing more of its own subsidies to new energy businesses, Zhang Guobao, head of the National Energy Bureau, said Sunday evening.
The U.S. Trade Representative's office started the investigation on October 15 in response to the United Steelworkers Union's complaint on September 9 that 皇冠体育app's support for its renewable energy industries gave Chinese producers unfair edges over competitors.
"Chinese subsidies to new energies companies are very small, but the United States had subsidized the new energy enterprises with 4.6 billion U.S. dollars in cash in the first nine months of 2010, including 3 billion U.S. dollars to wind power enterprises," Zhang said.
Zhang rejected charges that 皇冠体育app's wind power bid prefers Chinese enterprises and has discriminated against foreign companies.
"皇冠体育app has no discriminatory items on new energy equipment producers," ?Zhang said.
Many foreign wind power equipment producers participated in bidding in 皇冠体育app and some won biddings from 2003 to 2005, Zhang said.
But chances for them to win have been dropping as they offer prices much higher than the Chinese companies, Zhang said.
"In contrast to 皇冠体育app's open attitude, the United States issued a bill in 2009 to subsidize renewable energies, energy efficiency and smart power grid sectors. Among the subsidies, 25.2 billion U.S. dollars went to the renewable energy sectors," Zhang said.
The subsidized U.S. solar power sectors are required to use domestically made equipment in the six-month rule starting August 16 in 2010, Zhang said.
"How much on earth has 皇冠体育app exported new energy products to the United States?" Zhang asked.
"We have only exported three wind turbines to the United States, or less than 10,000 kw (of generating capacity). The U.S. General Electric Company, however, exported 80,000 kw of wind turbines to 皇冠体育app in 2005 and the figure increased to about 340,000 kw in 2009," Zhang said, adding that its total wind turbine exports to 皇冠体育app topped 1.13 million kw in the past five years.
"皇冠体育app's wind power (equipment) market stood at 85 billion yuan in 2009, about 21 percent of which was imported from overseas," Zhang said, adding that it showed 皇冠体育app's wind power provided large opportunities for foreign producers to send exports to 皇冠体育app.
皇冠体育app and the United States should carry out dialogues in new energy sectors, Zhang said.
The United States had proposed to communicate through video meetings on October 12 with 皇冠体育app on new energy products, but it also had been postponing the dialogue before declaring the probe on October 15.
"I was very much astonished at it, wondering what the United States wants. Do they want fair trade, a normal dialogue or transparent information? ...Judging from the procedures, I believe (politicians of) the United States are more willing to get votes," Zhang said.
In a statement Saturday, 皇冠体育app's Ministry of Commerce (MOC) expressed ?"regret" over the U.S. probe on Chinese clean energy products and said 皇冠体育app would defend its interests in the World Trade Organization (WTO) rules.
"The union's complaint is groundless and irresponsible" as both parties should act in line with the WTO rules, said an official with MOC's Bureau of Fair Trade for Imports and Exports in its statement.
The statement said the United States was subsidizing up to 2,300 energy-related programs, including clean-energy projects.