The head of a prominent photovoltaic company recently revealed that the U.S. "double anti-" measures aimed to target all components manufactured in China, effectively closing the door on Chinese solar exports. This move signals an ongoing effort by the U.S. to restrict the flow of photovoltaic products from China, despite China's efforts to address trade imbalances.
The trade disputes surrounding photovoltaic supply chains have not subsided due to China’s inability to resolve them, but rather because of continued U.S. actions. On January 20, the Ministry of Commerce announced its final decision on anti-dumping investigations against U.S. and South Korean solar-grade polysilicon imports into China. Just days later, the U.S. Department of Commerce launched new anti-dumping and countervailing duty investigations on Chinese PV products exported to the U.S.
On January 24, China also released preliminary findings on imported solar-grade polysilicon from the EU, ruling that it was dumped and causing significant harm to the domestic industry. However, the investigation authority decided not to impose temporary anti-dumping measures immediately. Sources indicated that Germany’s Wacker Chemie faced an anti-dumping tax of 21.8% and a countervailing duty of 10.7%, totaling 33.5%. Despite this, there is potential for a future resolution through price commitments between China and the EU.
The U.S. has once again stirred up tensions in the solar sector. As the year ended, the latest round of anti-dumping and countervailing investigations reflects that 2014 will be another challenging year for China’s solar industry. In November 2011, the U.S. imposed steep "double anti-" tariffs on Chinese photovoltaic cells, ranging from 18.32% to 249.96% for anti-dumping duties and 14.78% to 15.97% for countervailing duties. These high rates significantly increased the cost of exporting to the U.S., pushing many companies to shift production to third-party countries to avoid the tariffs.
However, this time, the situation is different. The U.S. “double anti†measures now cover nearly all photovoltaic products, and include all components made in China, effectively closing the door. A senior executive from a leading Chinese solar firm told the *Securities Daily* that previous strategies no longer work under the current framework.
Despite these challenges, the company remains optimistic, stating that they will actively cooperate with authorities to challenge the U.S. rulings. They also noted that the expansion of the domestic solar market in China provides some relief, reducing the impact of these trade barriers compared to past years.
China’s Ministry of Commerce expressed serious concerns over the U.S. actions, emphasizing that both nations are key players in clean energy development. The two countries have deep integration in the solar industry and should focus on cooperation rather than using trade remedies to limit competition. The U.S.’s earlier imposition of high tariffs in 2011 had negative consequences, disrupting the global supply chain and triggering disputes.
Even as China investigates imports of polysilicon from the U.S. and South Korea, both countries continue to exploit China’s processing trade system to bypass tariffs. For instance, in November 2013, 71% of South Korea’s polysilicon imports into China came through processing trade, while 98% of U.S. imports did the same. This highlights how the U.S. and South Korea are leveraging China’s trade mechanisms to avoid punitive measures.
In conclusion, the ongoing trade disputes between China and the U.S. in the photovoltaic sector reflect deeper economic and strategic tensions. Dialogue and cooperation remain the best path forward, ensuring sustainable growth and mutual benefits for both industries.
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