Counter measures suggested for coping with Sino-US solar duties

Chinese trade experts are warning of increasing trade frictions between China and the United States, saying that US trade protection measures are unlikely to ease in the short term.

Their warnings came after the US said on Tuesday in a preliminary ruling that it would impose duties of 2.9 to 4.7 percent on Chinese solar cells and panels.

The decision followed an investigation into whether the Chinese producers received unfair financial support.

Chinese experts called for countermeasures, including an appeal to the World Trade Organization and anti-subsidy investigations into US exports.

As the US presidential election approaches, trade protection measures from the US "will be very frequent in the short term", Zhang Yongjun, deputy research director at the China Center for International Economic Exchanges, a government think tank, said on Wednesday.

"The situation may get better next year when the election is over and the US economy further recovers and unemployment further declines."

Wang Haifeng, director of international economics at the Institute for International Economic Research, a think tank under the National Development and Reform Commission, agreed that "US trade protection measures targeting China will not decline because of the sluggish US economy and China's huge trade surplus with the US".

The administration of President Barack Obama set up an independent unit, the Interagency Trade Enforcement Center, last month to probe alleged unfair trade practices of its main partners, including China.

US lawmakers also passed a bill imposing anti-subsidy duties on non-market economy goods on March 13.

Zhou Shijian, a senior trade expert from the Center for US-China Relations at the Beijing-based Tsinghua University, said "the slow recovery of the economy and high unemployment in the US are mainly responsible for the recent surge of trade protection measures against China".

Zhou said: "Amid sluggish economic conditions caused by the financial crisis, the US maintained an unemployment rate above 7 percent (from December 2008 to February 2012). Also, it's easy to target China during a presidential election year."

Zhang added that China's trade surplus with the US, about $150 billion or one-fifth of the US trade deficit, is "often linked with the US high unemployment rate to win support at home".

However, Zhang ruled out a bilateral trade war because both countries "are clear that trade between the two highly-complementary markets benefit both greatly and no one can afford a trade war".

Zhang suggested the government further restructure its economy and narrow the trade surplus with the US.

Zhou urged the Chinese government to go further.

"The establishment of the ITEC runs against world trade rules and China should bring the case to the WTO," Zhou said.

The China Chamber of Commerce for Import and Export of Machinery and Electronic Products said on Wednesday that the solar duty ruling is "unfair and will impede the US solar industry".

The duty rate is lower than analysts had forecast and shows that "Chinese exporters did not receive heavy subsidies from the government".

"Instead, the US government gave huge subsidies, about 20 to 40 percent, to its producers of polysilicon, the raw material sold to Chinese solar panel manufacturers," according to Zhou.

"But the anti-dumping duties against Chinese solar producers, which will be announced on May 16, could be very high and kill the Chinese solar industry if domestic producers do not diversify their overseas markets or explore the huge domestic market," he said.

Wang said that Chinese solar producers could take countermeasures in addition to appealing the preliminary rulings.

China Stance:

Tariffs on solar panels "will harm US industry"

A Chinese industry group has hit out at a US decision to impose tariffs on solar panels imported from China.

Solar panel tariffs put Sino-U.S. trade under destructive risks

A recent U.S. decision to impose import duties on solar panels made in China is "mutually destructive," cutting profits for Chinese manufacturers and eliminating job opportunities in the United States, according to China's Ministry of Commerce (MOC).

Solar panel tariffs 'harm green sector'

The United States' preliminary decision to impose punitive duties on Chinese imports of solar panels will harm the interests of both sides, and negatively affect the development of the green energy industry in the US as well as cooperation between the two countries in the sector, the Ministry of Commerce said on Wednesday.

U.S. solar panel ruling harms both sides: MOC

A recent U.S. decision to impose new import duties on solar panels made in China will hurt the interests of both sides, the Ministry of Commerce (MOC) said Wednesday.

Manufacturers Responses:

Firms, analysts oppose more U.S. tariffs on Chinese solar panels

A number of Chinese solar panel makers and U.S. analysts have opposed or questioned the U.S. government's decision to levy more tariffs on solar panels imported from China.

Chinese company says U.S. ruling on solar cells "unjust and unreasonable"

China's leading solar panel manufacturer, Trina Solar, on Thursday joined a fresh wave of calls against the U.S. Department of Commerce's preliminary ruling to impose anti-subsidy duties on imported photovoltaic products from China, saying the U.S. decision is "unjust and unreasonable."

Solar panel makers say U.S. tariff "unjust"

Chinese solar panel makers on Wednesday voiced opposition against the latest U.S. decision to impose new import duties on solar panels made in China, declaring that they are ready to act to protect their interests in the overseas market.

US Action:

US keeps duty on China silicon imports

The United States said Tuesday it would maintain the existing anti-dumping duty on silicon metal from China, despite Beijing's repeated calls for Washington to drop protectionism.

U.S. gives sensible ruling on China's solar imports

US to levy antidumping duties on China's steel wheels

The US Commerce Department announced on Monday its affirmative final determination in the antidumping duty (AD) and countervailing duty (CVD) investigations of imports of steel wheels from China.

U.S. trade case on Chinese solar panels

The American Commerce Department is scheduled to decide in a month whether Chinese solar panels should be subject to an import tariff, after receiving complaints from domestic manufacturers.