The U.S. Solar Manufacturers File Federal Trade Complaint against China

solar Panels

As a result of mass dumping solar products globally, seven U.S. solar panel companies filed a federal trade complaint against Chinese companies on September 19th, 2011. The case was filed with the Department of Commerce and the International Trade Commission.

Greg Stanko, a spokesman for the U.S. companies, said that the complaint stresses the United States government to levy up to 100% tariffs on Chinese solar imports.

The panel of U.S. solar manufacturers said that China is applying unfair means to subside its solar industries with “an arsenal of land grants, contract awards, trade barriers, financing breaks, and supply chain subsidies to advance its pricing and export aggression.” However, the Chinese Embassy denied commenting on the statement.

China has also been charged for illegal dumping its industrial products on the international market. Illegal dumping refers to “a trade violation in which a country sells goods below the price of production to wipe out the competition”.
Gordon Brinser, president of SolarWorld Industries America Inc., said that “China’s wrongful tactics run systematically across the board. It actually has no production cost advantage”.

The Chinese solar companies are giving stiff competition to the U.S. solar industries. The demand for the U.S. solar panels has enormously reduced in the vital markets. Hence, the companies are facing firm rivalries, particularly in recession-battered Europe.

Solyndra LLC, the solar panel maker, based in Fremont, California, filed a bankruptcy case in August despite the beneficiary of a half-billion-dollar federal loan. It is a good example of intervening Chinese companies in the global market. Around 1,100 workers lost their jobs because of the company at risk.

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