Solar Tariffs to Hit Chinese Firms, More Bankruptcies Possible

This article in Chinese says another wave of solar bankruptcies could hit China due to the U.S. tariff decision.

A good English summary is here: SolarWorld's Trade Dispute Continues To Haunt China

China is the largest producer of solar technologies but will one day become the largest consumer as well, the U.S. Department of Commerce says. The surge in local demand there has been facilitated by the Chinese Government and has left very few opportunities for U.S. exporters relative to the market as a whole. Under their Golden Sun Program, designed to entice more alternative energy in the nation’s power grid, the government provided incentives to consumers, and hand-picked the PV manufacturer through a centralized process in which no U.S. supplier has ever won a contract.

The new tariffs do not even address this aspect of trade, nor does the U.S. do anything about it when it occurs in South Korea, Japan and other mercantilist nations. As social mood declines though, we can expect more conflicts, and the odds of having countervailing duties imposed will continue rising in the years ahead.

美对我光伏再双反 高关税恐引新一轮倒闭潮

"Chinese PV companies have just bottomed out, still in a state turns warm again, once high tariffs, there will be a large number of companies go down." For the U.S. Department of Commerce "double reverse" Chinese PV products, Artes Sunshine Power Group Chairman Qu Xiaohua said.

　　U.S. Department of Commerce released on the 3rd of photovoltaic products dual preliminary countervailing investigation, prima facie Chinese exports to the U.S. crystalline silicon photovoltaic products obtained over government subsidies, subsidy margin of 18.56 to 35.21 percent. The statement said preliminary results based on the magnitude of the subsidies, the U.S. Commerce Department will notify U.S. Customs these products exports to China imposed corresponding margin.

　　18.56 to 35.21% of the subsidy rate, the average tax rate up to 26.89%, a level that has been much higher than the 2012 United States of crystalline silicon photovoltaic cells collected from 14.78 to 15.97 percent countervailing duty.

　　Department of Commerce trade remedy investigations bureau has issued a statement, said the 4th, which is the case of the United States in November 2012 on the Chinese exports to the U.S. PV products have high anti-dumping, countervailing duty on Chinese PV products launched again double reverse investigate and attempt to impose high taxes, the Chinese side expresses its strong dissatisfaction.

　　The official pointed out that the United States earlier this year to ignore the facts and the legal basis for conflicting rules of origin on Chinese PV products in the same investigation started again and make preliminary ruling high taxes. "U.S. restrictions on the practice of Chinese products, is the abuse of trade remedy measures to protect the color is very obvious, is bound to make the Sino-US trade disputes photovoltaic upgrade again."

　　And most of the domestic photovoltaic companies get the same message, Yingli Green Energy Holding Company Limited Legal Director Fan Zhenhua feel the first time was "very shocked." His "Economic Information Daily" reporters, said: "ridiculously high rates, which have not yet taken into account the anti-dumping duty, and secondly, the adoption of a range of products directly filing time, in addition to the components produced in cells composed of Taiwan, as long as the silicon production processes or aspects of cell production began in China, the final product will be tariffs if the final ruling when the preliminary tax rate and product range and the same, then all Chinese photovoltaic products will be fully constrained, and such high rates difficult to implement, unless the customer is willing to accept higher prices. "

　　It is understood that the United States is expected this year about the 5G W photovoltaic installation to 6G W, which the Chinese component products for more than 50%, the impact of Chinese PV product exports in 2 billion to 3 billion U.S. dollars. Once the trade double reverse, impact on employment and industry are far greater than this figure.

　　Fan Zhenhua told the "Economic Information Daily" reporters, this result upset the Chinese PV companies in the United States development programs, projects and marketing strategies are required to make some adjustments. For several domestic leading enterprises, the U.S. market share is not small, emerging markets than larger. Yingli shipped last year, the U.S. market accounted for 20% of the annual volume. To focus on the U.S. market enterprises, in such a high tax rate to maintain a reasonable profit and competitive advantage of great difficulty.

　　PV companies have said that the next step should definitely be continued defense, in addition to the industry will continue to lobby areas. According to the relevant legal procedures, the U.S. Commerce Department will make a final ruling August 18, 2014, the U.S. International Trade Commission will make about 3 October 2014 industrial damage award.

　　Let the domestic photovoltaic enterprises more worrying is that the United States can be said to move from a bad head, might lead to more market follow suit, have a great negative impact on the Chinese PV companies in the development of the global market .

　　In the U.S. preliminary ruling on the release of a few days ago, India has also made final anti-dumping originating in China, China Taiwan, Malaysia and the United States solar panels, photovoltaic business between China anti-dumping duty at 0.64 to 0.81 U.S. dollars / watt involved. It is understood that China's exports to India component prices at around $ 0.63 / W, plus the basic anti-dumping duties to prevent the Chinese direct exports to India possible. Earlier, the Australian Anti-Dumping Committee has announced in May this year, decided to import from China PV modules and panels initiated anti-dumping investigations.