US Congress Turns Up Heat in China Solar Debate
There aren’t many things that US Republicans and Democrats can agree upon, but one of the few issues that seems to be uniting them in Washington these last few weeks is China bashing. In this particular case, both parties are strongly denouncing Chinese solar energy manufacturers, blaming their strong support from Beijing for an unfair advantage that has bankrupt many US solar panel makers in recent months. (English article) I previous predicted such China bashing would be coming after the US House of Representatives opened a hearing earlier this month into a $528 government-backed loan given to now-bankrupt US solar firm Solyndra. (previous post) But while I predicted we would see lots of anti-China talk, I failed foresee that the Democrats would unite with Republicans in the debate, making the likelihood of actual punitive measures more likely in this year before the big 2012 presidential elections. Now it looks like the House will call on the Obama administration to take this case to the World Trade Organization (WTO), which could easily rule against China due to Beijing’s huge support for its solar sector in the form of a wide range of preferential treatments for these firms. While such a complaint could take several years to resolve, the US lawmakers could also turn to the US-based International Trade Commission (ITC), which has the power to immediately issue punitive tariffs if it feels there is a strong case of unfair trade practices. Ironically, all the anti-China talk comes as Suntech (NYSE: STP), one of China’s leading solar players, has just announced a relatively big deal to supply 35 megawatts of capacity to two California projects. (company announcement) If the anti-China rhetoric continues on Capitol Hill and eventually turns into action at the WTO or ITC, this sale for Suntech could be one of the last ones from China to the US that we’ll see for a while. Of course, US solar energy producers might not have a lot of other choices by then, as most US panel makers are either on the brink of bankruptcy or already out of business.
Bottom line: US Congressional rhetoric against Chinese solar panel makers is showing signs of turning into concrete action in the form of punitive tariffs.
Related postings 相关文章:
◙ Tech, Environmental Issues Cast New Clouds Over Solar Firms
◙ US Solar Probe: Get Ready for China Bashing 美国太阳能调查：炮轰中国大潮的前奏
◙ US Solar Maker Fights Back With Govt Loan
