According to a Department official in SolarWorld, the US unit of German solar energy company, the final decision depends on the US Commerce Department that requires extra months to investigate cases related to charges of unfair Chinese government subsidies.
In an ambiguity associated with timing, the official said that the department would release its preliminary decision on countervailing duties on 14th February 2012, rather than the scheduled date on 12th January 2012. This controversial case has overwrought trade relations between the US and China. It will further become extravagant after Beijing comments on imposing tax duties by Washington on Chinese – made solar panels as the security of ‘protectionism.’
Many companies that install solar panels in the United States have opposed duties levied on Chinese counterparts. They have also requested SolarWorld to dissolve the case because of upcoming threats that can challenge solar power feasibility.
Despite Chinese intervention, the United States imported $1.5 billion of solar products in 2010, which was sufficiently high compared to $640 million in 2009. However, SolarWorld Industries Americas has charged China with providing a long list of subsidies to help Chinese solar cell and panel manufacturers grab market share.
On account of the case’s complexity, both of the parties’ industry officials believe that the Commerce Department will take time on releasing its preliminary decision on duties to offset the alleged subsidies.
SolarWorld remarked that the department should take stringent action on anti-dumping duties of more than 100 % to equalize unfair pricing practices by its Chinese competitors. At last, it is scheduled that the Commerce Department will offer its preliminary decision on anti-dumping duties in late March.