BEIJING--The U.S. on Tuesday moved to close a loophole that
allowed Chinese solar manufacturers to avoid tariffs by assembling
their products outside China, a move that Beijing said would worsen
trade relations between the two countries.
The U.S. Department of Commerce said on Tuesday it will seek to
impose duties ranging from nearly 19% to 35% on crystalline-silicon
photovoltaic products as long as their key components come from
China. Chinese solar products assembled and shipped from other
countries haven't been subject to U.S. anti-dumping and antisubsidy
tariffs, which were originally imposed in 2012. The new duties
require final approval from both the Commerce Department and the
U.S. International Trade Commission.
China said on Wednesday that it is "strongly dissatisfied" with
the decision.
The ruling by the U.S. "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 U.S.," the
Ministry of Commerce said in a statement on its website.
The Chinese commerce ministry said it hopes the U.S. will
proceed cautiously with the investigation, adding that it could
take actions to protect its rights if necessary.
The decision comes as imports of Chinese-made solar products
into the U.S. slow. Last year, imports totaled $1.49 billion,
according to the Commerce Department, citing U.S. census data. That
is less than half the $3.12 billion imported in 2011.
Solar products have been a flash point in trade relations
between China, the U.S. and the European Union as the global
financial crisis hurt the implementation of big solar-energy
products and as industry capacity grew sharply. Last year, China
and the EU reached a deal under which Chinese manufacturers
committed to setting a minimum price for their products in the
region, thus avoiding tariffs.
The U.S. initially imposed tariffs on China-made solar cells in
2012 after it determined that Chinese makers got illegal subsidies
and dumped goods. China retaliated a year later by announcing its
own tariffs on raw materials from the U.S. and South Korea that are
used to make solar panels.
China has pushed to build a homegrown solar industry as part of
an effort to grow beyond its reputation as a low-cost maker of
simple goods It also wants to help address the country's energy
needs and severe pollution problems.
The Tuesday decision stems from a petition filed last year by a
U.S. solar products company, SolarWorld Industries America Inc., of
Hillsboro, Ore. The U.S. started a probe into Chinese solar
products early this year.
Under the proposed tariffs, imports made by Wuxi Suntech Power
Co. and related companies would face a 35.21% rate, while goods
made by Trina Solar Ltd. would face an 18.56% rate. The companies
couldn't immediately be reached for comment. Suntech Power Holdings
Co. last year agreed to sell Wuxi Suntech, its main Chinese
operation, to Shunfeng Photovoltaic International Ltd. as part of
an effort to pay off debt.
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