China: Polysilicon firms' calls for US anti-dumping probe meet resistance

15/02/2012 12:00 - 396 Views

Chinese polysilicon manufacturers are confident that their calls for a "reverse" anti-dumping investigation into US makers of the material will be heard, despite opposition from downstream industries and a Ministry of Commerce that is afraid of prompting further trade disputes with the United States, reports the Chinese-language Economic Observer.

According to the report, four firms, including China Silicon and Jiangsu Zhongneng Polysilicon Technology Development, filed applications with the ministry in late January, demanding anti-dumping and anti-subsidy investigations into US-produced polysilicon products. But the move was strongly opposed by downstream manufacturers, who worry that the investigation would sharply increase their raw material costs.

The commerce ministry was cautious about taking any action on the demands, fearing backlash from the United States, where firms have asked for investigations into alleged dumping by Chinese solar panel makers.

On Oct. 19 last year, German solar panel maker Solar World's branches in the United States as well as six other American solar panel producers filed complaints with authorities in the US, asking for anti-dumping and anti-subsidy investigations and the imposition of a 100% tariff on Chinese solar panels exported to the United States. If carried out, these investigations will cause operational difficulties for China's solar panel firms.

The report said that, in order to respond to the investigations, four Chinese firms asked their government to launch a similar investigation into American polysilicon imports. China's Ministry of Commerce has not disclosed any information on the "reverse" investigation; a ministry official told the Economic Observer that no firms have demanded such a probe.

A spokesperson for China's solar industry alliance, meanwhile, has suggested that polysilicon manufacturers file applications with the ministry. The alliance is composed of more than 10 enterprises and organizations that account for 70% of the nation's total polysilicon and 50% of its solar battery production.

Downstream manufacturers of solar silicon chips, batteries and components pose another problem for Chinese polysilicon manufacturers' anti-dumping complaint; if China imposes sanctions against American polysilicon manufacturers, the number of raw material sources available to these firms will decrease, increasing their production costs. In the first half of 2011, China imported over 5,000 tons of polysilicon, with about one-third coming from the United States.

Source: wantchinatimes.com