China’s Ministry of Commerce yesterday announced an investigation into US government policy and subsidy support for renewable energy, after a US decision earlier this month to probe sales of Chinese--made solar panels in the US.
The announcement comes after China’s solar industry association said on Tuesday that Chinese solar companies might ask Beijing to launch an anti-dumping and subsidy probe into imports of US polysilicon, the raw material used to make solar cells.
“The Ministry of Commerce has decided to initiate a trade barrier investigation into policy support and subsidies for the US renewable energy sector,” a statement on the ministry’s Web site said.
It said Chinese companies argued that the US policies “constitute a trade barrier against the export of Chinese renewable energy products to the United States.”
Companies complained that US measures “violated the United States’ commitments under World Trade Organization rules and are an unreasonable barrier and restriction on China’s renewable energy industry, reducing the competitiveness of Chinese products in the US market,” according to the statement.
The investigation would cover programs from the states of Washington, Massachusetts, Ohio, New Jersey and California, the statement said, and include wind energy, solar and hydro technology products.
“During the investigation, the investigating agency may engage in consultations with the US government concerning the measures in question,” the ministry said.
A ministry spokesman said earlier this month it was “greatly concerned” about Washington’s probe into whether China was selling solar panels in the US at unfair discounts and that its investigation could hurt US-China energy cooperation.
While the US probe threatens to deprive Chinese rivals of a large chunk of the solar market, analysts say US solar firms also risk losing some of the business too if the dispute escalates into a major rift between the two nations.
The US was a significant net exporter of solar products last year, including to China, according to US industry group the Solar Energy Industries Association.
Total US exports of solar energy products were US$5.6 billion, with net exports totaling US$2 billion.
US imports of solar panels from China rose to US$1.5 billion last year, from US$640 million in 2009.
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