China says US solar ruling smacks of protectionism

SHANGHAI: China said it was “deeply concerned” about a preliminary ruling by a US trade body that trade practices by Chinese solar makers are hurting US producers and said the decision underscored a US “inclination to trade protectionism.”

Such protectionism measures would hurt bilateral trade and jeopardise mutual cooperation on new energy issues, the Commerce Ministry said in a statement on its website.

The statement came after the US International Trade Commission approved an investigation into charges of unfair Chinese trade practices in the solar energy sector, setting the stage for possible steep US duties and ratcheting up tensions with Beijing on the green trade front.

The US commission voted 6-0 that there was a reasonable indication that Solar-World Industries America and other US producers had been harmed by the imports or could have been.

“The ruling was made without sufficient evidence showing US solar panel industry has been harmed and ignored defences from Chinese firms as well as opposition from the US domestic industries and other stakeholders,” the ministry said.

“China is deeply concerned with the decision, which does not tally with facts and highlights the United States' strong tendency for trade protectionism.”

China also hit back by saying that the US should “objectively analyse why some of its solar panel firms lack competitiveness.”

The vote allows the Commerce Department to continue an investigation that could lead to both countervailing and anti-dumping duties on solar cells and panels from China.

US imports of the solar products from China totalled US$1.5bil in 2010, up from US$640mil in 2009. - Reuters