On June 3, the US Department of Commerce in a preliminary ruling confirmed the existence of subsidies for China-made crystalline silicon photovoltaic products, thereby demanding the imposition of 35.2% extra tariffs on solar panels from China, which will deal another severe blow to China's photovoltaic industry, on the heels of the levy of 18.32%-249.96% anti-dumping tariffs and 14.28%-15.95% countervailing duty on China-made crystalline silicon photovoltaic cells and components in 2012.

A commerce official in Jiangsu province said that the latest verdict will put a damper on export of China-made photovoltaic products, with Jiangsu photovoltaic firms being the major victim, according to Shanghai's National Business Daily. Some industry insiders, however, said that the ruling may be a mixed blessing, as it will force China's photovoltaic industry to upgrade its products and adjust its capacity, inducing it to develop in a healthy direction.

In its ruling, the US department determined that Chinese photovoltaic products have received government subsidies ranging from 18.56%-35.21%, following four months of investigation, in response to a complaint filed by the US branch of Germany-based SolarWorld.

The department will require US customs to levy anti-dumping and countervailing duties on China-made photovoltaic products, should the preliminary ruling be upheld by the final ruling of the department due in August and that of the US International Trade Commission, which will come out in October.

The levy of anti-dumping and countervailing duties may turn out to be a double-edged sword for the US, however, as it will also harm the interest of downstream photovoltaic firms in the US, according to US think tanks and the US photovoltaic industry association. The Coalition for Affordable Solar Energy (CASE), representing 90 US photovoltaic firms immediately expressed disappointment over the ruling after its release, saying it will boost prices of US photovoltaic products and cut jobs. It urged the US government to talk with its Chinese counterparts to find a solution to the dispute, which is global in nature, instead of resorting to trade litigation.

The US photovoltaic industry had 143,000 employees in 2013, half of whom work on installations, with manufacturing accounting for only 21%.

Jiangsu, the largest photovoltaic-industry base in China, will be hit the hardest. In 2014, photovoltaic installations in the US will top 5GW-6GW, half of which will involve China-made products.

June 6, 2014

Source: WantChinaTimes