A report issued by the Trump administration in March promised a more aggressive approach to unfair international trade practices, including expanded use of  Section 201 of the Trade Act of 1974. Under Section 201, the President may impose sanctions to protect American businesses from dumping low-cost products on the U.S. market.The report refers to this as a “vital tool for industries needing temporary relief from imports to become more competitive.” Section 201 was most famously used by the steel industry in 2002 to obtain a three-year moratorium on imported steel.

Bankrupt Manufacturer Seeks Sanctions

Solar cell manufacturer Suniva, which declared bankruptcy last week, is now looking for the relief promised by the administration under Section 201. Because Chinese manufacturers of solar panels have flooded American markets with panels at prices too low for U.S. manufacturers to compete, Suniva filed a petition with the Trade Commission seeking “… a recommendation to the President of four years of relief of an initial duty rate on cells of $0.40/watt, along with an initial floor price on modules of $0.78/watt. Petitioner also seeks other equitable remedies that will effectively assist the domestic industry to make a positive adjustment to import competition. Finally, petitioner seeks a recommendation from the Commission to the President that the United States negotiate with trading partners to address the global supply imbalance and overcapacity in CSPV cells and modules.” This will  “…allow the domestic industry to survive long enough that it can benefit from actions of the U.S. government, and foreign governments and producers to address the massive excess global capacity that has depressed global CSPV cells and modules prices to unsustainable levels.”

Experts React to Filing

Jade Jones, a senior solar analyst with GTM Research, explained the impact on module pricing: “That would bring us to module price levels seen in the last oversupply cycle. So similar to prices in 2012. That would also make the U.S. the highest priced market in the world, with module prices more than double other regions.”

In a statement from CEO Abigail Ross Hopper, the Solar Energy Industries Association reacted negatively to the action.  “We strongly urge the federal government to find a resolution that bolsters the competitiveness of American solar cell and panel manufacturing, which employs approximately 2,000 people in the U.S., without erecting new trade barriers. SEIA opposes any resolution that restricts fairly-traded imports of solar equipment through new tariffs or other barriers that endanger the livelihoods of the 260,000 American solar workers and their families living in every state in the Union.”

Prepare for Irony

The irony of this case is not lost on observers of the solar industry and international trade. What we are looking at is not merely a case of an American manufacturing company standing up to Chinese dumping of cheap solar panels on the U.S. market. That battle was fought in 2012, and the commerce Department slapped Chinese manufacturers with tariffs of as much as 36% for their unfair practices. This case is very different.

This action would COST American jobs, not protect them.

As stated by the Solar Energy Industry Association, the jobs in the U.S. solar industry are in installation and operations, not in manufacturing. American solar manufacturing, like most other manufacturing industries, is not doing well in the states. They cannot compete with cheap and exploitative labor practices overseas. Installation, however, cannot be outsourced. Additional sanctions against Chinese panels would only delay the inevitable collapse of a non-competitive industry while damaging a flourishing one.

Suniva in NOT American-owned. It is owned by the Chinese.

To add insult to injury, Suniva is not even owned by Americans. Shunfeng International Clean Energy Ltd. acquired 63 percent of Suniva in 2015. Shunfeng (whose subsidiary Suntech took a major hit in the anti-dumping action of 2012 and went bankrupt in 2013)  purchased the troubled solar company in a clear attempt to do an end-run around anti-dumping regulations while tapping into superior U.S. research and development. The strategy backfired though, and Shunfeng has recently upgraded its reported loss in 2016 of around US$133 million to US$348 million.

It doesn’t take a genius to see that Chinese companies are playing both sides of the fence in the U.S. solar market. Chinese money is so deeply embedded in the U.S. economy that any sanctions on the part of the current administration could have countless unanticipated consequences. This may explain the softening of the hard-line rhetoric on the part of the President- and his new found friendship with the Chinese leaders.

The post Suniva Lobbies Trump for Protection From Chinese Solar Imports appeared first on Solar Tribune.

The recent problems began with news of a cooling Chinese economy, and this is important to solar watchers for a number of reasons. Although no one can say for sure how long the stock sell-off will last, some solar market watchers are looking at the implications for the solar industry in both the near and long term. Many investors are watching companies like Trina solar, who are being dragged down with the rest of the market, as good opportunities to buy and hold. Professional investors at Seeking Alpha believe that Trina, Junko and other Chinese solar manufacturers that have sound financial fundamentals and are showing growth may be looking at a strong rebound when the market finishes its correction.

One factor that has plagued solar stocks this summer is their continued association with other energy stocks. In October of 2014, we here at Solar Tribune reported on the solar industry’s struggle to educate investors and decouple solar prices from the falling price of crude oil. I wrote that “In the US, Solar competes primarily with coal-fired electricity, which supplies 39% of the nation’s energy supply. Meanwhile, petroleum supplies only 1% of US electrical generation. Petroleum prices could drop precipitously, and make virtually no dent in the price of electricity. On the other hand, solar does compete directly with natural gas, which is the nation’s #2 source of electricity, providing 27% of US electrical generation. Back in March, CNBC reported that price links between solar and crude prices had “begun to break down completely.” However, current conditions indicate that the uncoupling from petroleum is not yet complete…” Unfortunately, that decoupling process is still not entirely complete, and volatility in oil prices continues to hurt solar.

Among the bloodbath taking place on Wall Street right now, solar stocks are generally looking better than a lot of other industries. Both Trina and Jinko showed gains, as well as First Solar and Canadian solar. Commentators speculate that this stronger performance of solar among the ruins may be due in part to President Obama’s announcement of the roll out of new incentive programs for solar.

The initiatives include:

• $1 billion in additional loan guarantee for energy projects.
• Making Property-Assessed Clean Energy (PACE) financing available for single-family housing easier to invest in.
• Launching new programs to provide home owners with new tools to measure and improve the energy efficiency of their homes.
• Creating a DOD Privatized Housing Solar Challenge.
• A $24 million commitment for 11 projects in seven states to double the amount of energy existing solar panels can produce.
• Approving a transmission line to support a 485-megawatt photovoltaic facility.
• Creating an Interagency Task Force to Promote a Clean Energy Future for All Americans.
• The White House continued that its initiatives are expected to reduce emissions by 26-28 percent below 2005 levels in 2025 while also doubling energy productivity by 2030.

The other piece of the puzzle is interest rates. This will definitely have an effect on how the solar industry performs going into 2016. The Motley Fool reports: “The threat of higher interest rates, which would lead to lower returns for solar projects, has also threatened companies’ potential for expansion. Debt investors have demanded higher rates of return from SunEdison (NYSE:SUNE) and SolarCity (NASDAQ:SCTY), two of the most active solar companies in the debt markets, and that has to be a little concerning for the industry.”

Despite their grim outlook for solar, even the Motley Fool sees the stronger solar companies as good long-term investments. Ultimately, growth may slow, but look to solar companies to possibly out-perform other sectors in the months and years to come.

The post Solar and the Stock Market appeared first on Solar Tribune.

The Hanergy crash was just one of several high profile Chinese solar companies that have made headlines recently…and not in a good way. Recently, in its annual filing with the U.S. Securities and Exchange Commission (SEC), Chinese solar PV manufacturer Yingli Green Energy Holding Co. Ltd. said, “There is substantial doubt as to our ability to continue as a going concern.” Shortly after the report, Yingli stock fell to an all-time low of $0.72 after closing at $1.49 the previous day.

After the collapse of Chinese solar giant SunTech in 2013 and LDK Solar in 2014, many stock watchers are wondering if Yingli and Hanergy are headed down the same road. Yingli shows some signs of recovery recently, but Hanergy continues to plunge as regulators move in to investigate. What is going on here?

Empty Hanergy plant. photo:Bronte Capital

In a shocking report at Bronte Capital, the author posted photos of a nearly empty Hanergy factory taken just six weeks ago. “I went to visit Hanergy’s main factory in China about a six weeks ago. It was almost entirely silent. There was essentially no production of solar cells at all and the accounts that suggest significant production and sales are entirely fraudulent.”

As for Yingli, the story is not as bad, but it certainly isn’t great. Yingli is taking a beating in both the US and European market, where it is subject to anti-dumping tariffs, due to its dubious past business practices. According to the NY Times: “The (Commerce) department announced anti-dumping duties of 26.71 percent to 78.42 percent on imports of most solar panels made in China, and rates of 11.45 percent to 27.55 percent on imports of solar cells made in Taiwan. In addition, the department announced anti-subsidy duties of 27.64 percent to 49.79 percent for Chinese modules.” These tariffs, along with similar ones levied by the nations of the European Union will likely prevent Yingli from showing much in the way of growth in the years to come.

A Few Bright Spots For Chinese Solar

photo: The Guardian

Trina Solar is looking strong, announcing this week that it will be the second big name to jump into the residential lithium-ion battery business, nipping at the heels of Tesla. Tesla’s CEO Elon Musk rolled out the new “PowerWall” last month to much hoopla, but Trina’s “soft launch” of their new battery looks promising. In addition, Trina reports that during the first quarter of 2015, net revenues were $558.1 million, a decrease of 20.8% sequentially and an increase of 25.5% year-over-year. Total shipments were 1,026.2 MW, consisting of 891.7 MW of external shipments which were recognized in revenue, and 134.5 MW of shipments to the Company’s downstream power projects.

Jinko Solar also beat first quarter expectations. Jinko reported $0.88 earnings per share (EPS) for the quarter, beating estimates of $0.46 by $0.42. The company had revenue of $443.50 million for the quarter, compared to estimates of $372.17 million. During the same quarter in the previous year, the company posted $0.20 earnings per share. The company’s revenue for the quarter was up 36.9% on a year-over-year basis.

Several analysts have recently commented on the stock. Analysts at TheStreet upgraded shares of JinkoSolar Holding Co. from a “sell” rating to a “hold” rating in a research note on Friday, May 1st. Separately, analysts at Zacks upgraded shares of JinkoSolar Holding Co. from a “sell” rating to a “hold” rating and set a $30.00 price target on the stock in a research note on Friday, May 1st.

ReneSola is also getting some modest love from investors. gurofocus calls ReneSola “ Good Stock To Buy For The Long-Term…Although ReneSola’s performance in the past has not been very exciting, we see it is indeed making the right moves to fuel its growth going forward.”

The bottom line seems to be, despite the horrifying headlines about Hanergy, savvy investors may still find good investments in Chinese Solar, as long as they do plenty of research.

The post What’s Going On With Chinese Solar Stocks? appeared first on Solar Tribune.

China’s National Energy Administration (NEA), has set a new PV target for 2015, which amounts to a whopping 27% more than the 2014 target of 14GW. Also last month, it was announced that the last of Beijing’s four major coal-fired power plants will completely shut down. China Huaneng Group Corporation’s 845-megawatt power plant will close in 2016. Worldwide and domestic outrage over air-quality account for one reason for the new and ambitious moves to expand renewable energy development, but major economic factors are at play as well.

Last year, President Obama and Chinese President Xi Jinping, announced “Historic” CO2 reduction plans that would see the Chinese carbon emissions peak “around 2030” and then level out or begin to decline. President Xi also promised that by then, 20 percent of China’s energy will be renewable. Many question how effective this policy will be, as China’s emissions continue to skyrocket. Also, with the Chinese governments dictatorial authority over energy policy, why will it take so long?

For better or worse, Chinese energy policy has generally been coherent, well organized and nimbly executed. When the nation required more energy to power it’s meteoric rise as the world’s industrial powerhouse, it needed only to proclaim that new coal-fired power plants be built, unhindered by any of the types of environmental debates held in democratic governments. By the same token, those plants can be shut down and replaced by cleaner gas-fired plants and new solar generation just as quickly, without any pushback from advocates of the “free market.”

Melanie Hart, a Policy Analyst on China Energy and Climate Policy at the Center for American Progress wrote in 2012: “Those policies are often difficult to parse because China’s economic system is not like that of the United States. It is a non-market economy with a top-down, command-and-control energy planning process that is often nontransparent with even more opaque interactions between the central government in Beijing and the provincial and local governments when these policies are implemented.” Hart was writing at that time about the trade dispute over China dumping low-cost solar panels in the U.S. market and the effect it was having on fledgeling American manufacturers.

Not only has China gained global dominance in Solar manufacturing, but it used its massive, unregulated coal plants to achieve that dominance. Hart pointed out three years ago that: The problem is China is particularly good at making things cheaply. At the lower end of the value chain, that is primarily due to the country’s low labor costs and massive supply chains. Also advantageous are China’s lax labor, safety, health, and environmental standards. At the higher end, that is often because the Chinese government provides generous subsidies and other forms of support for high-technology research, development, and commercialization. Low-cost Chinese manufacturing plays a large role in driving prices down for a wide range of products, including renewable energy technologies. Chinese manufacturing also plays a large role in pricing some U.S. manufacturers out of business, with many of those manufacturers claiming that the “China price” is driven by Chinese government intervention rather than natural market forces. If the Chinese government is intervening in a way that breaks trade rules then that type of rule breaking should be remedied in some way.”

The LED screen shows the rising sun in Tiananmen Square which is shrouded with heavy smog.

Regardless of the motivations behind the rapid movement toward a solar economy, the new solar push is a win/win situation all around. If the U.S. tariff does have an impact on the Chinese solar industry, the increased domestic demand will take up the excess supply, and hopefully, the Chinese people will begin to see a bright sunrise in clearer, less smoggy skies.

The post Chinese Solar: The Sleeping Giant Is Waking To A New, Smoggy Sunrise appeared first on Solar Tribune.

With PV’s installed price continuing its multi-year decline, there are some questions about the viability of solar thermal technologies. Solar thermal for both residential scale water and space heating as well as utility scale electricity generation were long thought to have better economic potential than PV. As recently as 2008, Home Power magazine was reporting that Solar Domestic Hot Water (SDHW) was paying back 2 ½ times faster than PV for residential use. Then, the installed cost of PV began to drop, and dropped more than 50% between 2007 and 2014. By 2013, Renewable Energy World was reporting that “…household-level solar water heating comes with so many unnecessary drawbacks that it is clear the future lies in another direction. Solar photovoltaic is a highly-effective source for a heat-pump water-heating system.” PV panel prices are so low right now that by most reports it is actually more cost effective to use PV for space heating or hot water than are conventional solar thermal systems.

As for large scale projects, construction of CSP generating stations in the US have all but halted, although the technology seems to be going strong in North Africa and the Middle East. Despite the rapid decline in PV prices and the advances in efficiency, CSP has made advances as well, including new projects that include up to 16 hours of energy storage, allowing CSP plants to make power much more consistently than PV. So why is CSP flourishing in the Middle East and languishing in the US? RP Seigel of justmeans.com reports: “In Arizona, the Solana plant, built by Abengoa … has the additional feature of thermal storage that allows it to provide power through most of the night as well, only without the use of fossil fuels. This accomplishment represents a sort of Holy Grail for renewables, yet, despite this, it’s unclear whether the company will build another one of these, either. In this case, it’s because of uncertainty about the Investment Tax Credit (ITC) which is due to expire at its current 30% level in 2016…”

Agengoa CSP plant in Arizona photo:cspworld.com

Will we ever see a resurgence in the solar thermal business, either large scale or residential in the US, or will PV continue to dominate while solar thermal languishes and eventually fades away? No one can say for sure, but if solar thermal is to make a comeback, it will require the right circumstances. PV prices will need to level out, and solar thermal will need to find it’s new niche. As for PV panel prices, the glut of cheap Chinese panels flooding into the US may be coming to an end in the near future, if the federal government decides to levy a tariff on the Chinese to prevent future dumping. Also, if grid access becomes more difficult, as many utility companies would like to make it, it may make solar thermal look more attractive.

Solar thermal is finding specialty uses in the industrial sector as well. The team of the James S. Markiewicz Solar Energy Facility at Valparaiso University, funded through a $2.3 million grant through the Department of Energy, is nearing its goal to create a commercially viable process of making magnesium using sunlight.

“The team has proven the feasibility of doing this in the laboratory, and now we are preparing to do this in the solar furnace,” said Scott Duncan, Ph.D., Associate Professor, Mechanical Engineering, Valpo College of Engineering. Success could result in a cost-effective manufacturing process in the U.S. that is less harmful to the environment and less energy intensive. Today, most magnesium comes from China and is desirable in the transportation sector because it is 30% lighter than aluminum. In fact, any process that uses large amounts of heat, like kiln-drying lumber and dehydrating food could utilize solar thermal technology.

In the mean time, we can expect to see solar thermals market narrow in the US until the market shifts again.

The post Solar Thermal Technology: Will It Survive? appeared first on Solar Tribune.

In the wake of the Obama administration’s mixed bag of hits and misses on energy policy, some Republicans are looking to use the Solyndra debacle and supports for solar power in general as a sign of the failure of Democratic energy policy. Other Republicans have their own solar success stories to tell. On the Democratic side as well, the current group of front runners range from strong solar supporters to openly anti-solar.

Solar Tribune has compiled a list of the leading (as of yet undeclared) candidates as of the beginning of 2015, and assigned each a grade, based on their commitment to solar power. Admittedly, it is a somewhat subjective process, but the criteria is as follows:

A- Strong support in statements and actions
B- Support in statements, moderate action
C- Moderate support in statements
D- Little or no support
F- Anti-Solar in statement or action

This ranking does not reflect the candidates philosophy on markets vs. incentives, climate science, support for fossil fuels or any other criteria other than their actual statements regarding solar’s significance in the future of the nation’s energy mix, and their personal actions to help or hinder the growth of the industry.

REPUBLICANS

Jeb Bush: C
Jeb Bush currently is currently generating a lot of heat in the Republican field, and is very popular with the big-money funders needed to mount a successful campaign.
Bush endorsed setting a national goal of 25% renewable energy by 2025, but as governor of Florida, he did not promote much in the way of solar policy. Florida does not have a renewable portfolio standard, property tax exemptions, or a statewide solar power rebate system.

Chris Christie: A
Chris Christie is probably the most outspoken advocate for solar energy of any of the leading republican contenders. Gov. Christie stated that “The future for New Jersey is in green energy and already we’ve put in place policies to broaden our access to renewable sources of energy, cleaner natural gas generation and ending our reliance on coal generation.” Christie signed into law an acceleration of the renewable portfolio standard (RPS) for solar energy and a reduction of the solar alternate compliance payments.

Ted Cruz: F
Although Senator Ted Cruz of Texas has not gone on record as being vehemently anti-solar, he has been remarkably silent on renewable energy issues in general. However, Cruz has long been active in the American Legislative Exchange Council (ALEC). ALEC has provided model legislation for many conservative state legislators across the country, and is currently promoting rolling back net metering and charging solar energy producers for access to the grid.

Mike Huckabee: C
Former Arkansas Governor Mike Huckabee has not offered a lot of specifics as far as renewable energy policy goes, other than voicing support in general for reducing dependence on foreign energy sources. His home state of Arkansas has average to above average solar policies.

Bobby Jindal: D
Louisiana Governor Bobby Jindal has said: “Republicans seem instinctively to oppose cultivating…solar and wind power. Likewise, Democrats often stridently oppose… oil, coal, and nuclear power. Here’s an idea: how about we do it all? That’s not a Republican or Democrat solution. That’s an American solution.” Meanwhile, he has signed legislation to end solar tax credits.

Rand Paul: C
Senator Rand Paul makes no bones about his beliefs that government should not be playing favorites in the market, so it is so surprise that he is not a fan of government-funded solar programs. In fact, he blames “government intervention” for much of the nations energy problems. Sen Paul has stated: “”I favor tax incentives for alternative energy, but I oppose subsidies, which has the effect of allowing the government to choose winners and losers.” If taken at his word, that means he opposes subsidies for fossil fuels as well, which give them an unfair advantage over emerging renewable technologies.

Rick Perry: D
As governor of Texas, Rick Perry has done a lot to promote utility scale wind power development, but very little in the way of leadership on solar development. In 2005, he signed a bill requiring Texas to have 5,880 megawatts of renewables capacity by 2015. The state has already surpassed that requirement, primarily through large wind. The Texas Public Utilities Commission, appointed by Perry, has blocked significant implementation of net metering.

Marco Rubio: C
Florida Senator Marco Rubio has stated his support for a broad energy mix, including more biofuels, and more nuclear, solar and wind power. However, he has been skeptical about the role of renewable energy. “What I have a problem with is this idea we can windmill our way into the 21st Century,” he said.

Paul Ryan: F
Wisconsin Senator Paul Ryan, Like Senator Ted Cruz, is heavily tied to the American Legislative Exchange Council (ALEC). In addition to supporting ALEC’s anti-solar agenda, Paul Ryan has tried to make an example of solar incentives as a poor use of federal funds. Despite his criticisms, several of the projects he has sited as failures have actually been successfully completed.

DEMOCRATS

Joe Biden: B
Vice President Joe Biden has been an outspoken supporter of renewable energy around the globe. In fact, his brother, Frank Biden, is involved in developing solar projects at luxury resorts in Central America and the Middle East. Biden has had a primarily pro-renewables voting record in the senate.

Hillary Clinton: A
At the National Clean Energy Summit in Las Vegas, former New York Senator and Secretary of State Hillary Clinton told the audience that the U.S. “cannot afford to cede leadership in this area,” addressing China’s growing position in the solar marketplace. “Our economic recovery, our efforts against climate change, our strategic position in the world all will improve if we can build a safe bridge to a clean energy economy.” Clinton had a strong pro-renewables voting record in the senate.

Bernie Sanders: A
The Senator from Vermont has been a stalwart advocate of renewable energy, and solar in particular, for many years. In 2010, Bernie Sanders introduced a bill to encourage the implementation of 10 million rooftop solar projects in 10 years. Unfortunately, it didn’t go anywhere. An Independent and self-described “socialist”, Sanders plans to run for the Democratic Party nomination.

Elizabeth Warren: C
Massachusetts Senator Elizabeth Warren is still relatively new to the US Senate, and she has not taken a strong stand on solar issues as of yet. Senator Warren is known as a strong financial regulator in favor of bank reforms, and on her website she states: “Right now, renewable energy competes with old energies that get lots of special breaks from Washington. We know that we can generate power with alternative energy sources like wind, solar, and hydropower.”

Jim Webb: F
Jim Webb is considered a moderate Democrat from the coal-producing state of Virginia. As Senator, he held a very conservative position on energy issues. Rather than solar and wind, Webb has stated that “I believe the way to go with coal is to get the technology to address the issues, rather than to put coal out of business. And I’m a strong believer, from the time that I was 18 years old, in the advantages of nuclear power.”

The post 2016 Presidential Campaign: Solar Scorecard appeared first on Solar Tribune.

China Sunergy is affiliated with the China Electrical Equipment Group, or CEEG. It supplies cells to many leading European solar module makers and provides material to aircraft and other manufacturers.

The company recently opened a facility in Turkey to serve Middle East markets and customers in Europe. However, the stock that’s listed as CSUN continues to drop due to investor wariness about production claims and future growth.

Company officials managed to keep afloat by convincing Chinese banks and creditors to work with them to restructure company debt. Despite problems with prospective performance along with current output, the company also appears to have successfully lined up additional credit from U.S. sources. Company leaders also believe they will raise additional funding in Turkey.

China Sunergy earned more than $30 million in the first quarter of 2014, compared to $54 million in first quarter, 2013. Facing financial challenges, company leaders have cut bak on expenses and refocused strategy towards high value markets like France and Japan.

Worldwide, Chinese solar energy companies face challenges from increased regulation. China’s sometimes stormy relationships with immediate neighbors, including sparring with Japan and Vietnam over energy-rich islands in the China Sea has slowed some company growth.

The post China Sunergy facing challenges appeared first on Solar Tribune.

In 2012, the U.S. imposed anti-dumping tariffs and countervailing duties of up to 250% on Chinese-made solar cells after finding that Chinese firms were benefiting from unfair government subsidies and selling solar panels at below-cost prices in the U.S.

But according to SolarWorld, Chinese firms are able to avoid these tariffs by assembling panels with solar cells made in other countries, including Taiwan. The PV panel manufacturer has filed a complaint to the U.S. International Trade Commission and Department of Commerce against China and Taiwan to close this so-called ‘loophole.’

“We’re finishing the job of presenting the facts to our trade regulators to prevent China from further damaging yet another manufacturing industry and another rich base of employment,” said Mukesh Dulani, president of SolarWorld Industries America Inc., based in Oregon.

SolarWorld claims that China does not actually have a production cost advantage, and is still benefiting from unfair government subsidies and selling products at below cost price to gain market share in the U.S.

“China obviously recognizes the key importance of solar-technology manufacturing to future economic competitiveness. But we do, too,” Dulani added. “Therefore, we are once again simply asking our trade regulators to investigate the facts and apply the well-established laws that enable free trade, robust competition and lower long-term pricing. If fair competition can be restored, the U.S. industry will return to growth.”

Quality inspection station in module assembly at the SolarWorld manufacturing facility in Hillsboro, Oregon. Photo Credit: SolarWorld

But the U.S. solar PV industry group opposed SolarWorld’s move, calling for negotiation and action from the Chinese and U.S. governments.

“We oppose today’s escalation of the U.S.-China solar trade conflict…Trade litigation is a blunt instrument and, alone, incapable of resolving the complex competitiveness issues that exist between the U.S. and Chinese solar industries,” said Rhone Resch, president and CEO of the Solar Energy Industries Association.

“It’s time to end this conflict and negotiations must play a role,” he continued. “It’s time for both governments to get in the game and end this conflict – we urge the United States and China to immediately commit to serious, results-driven negotiations.”

The post SolarWorld files new trade complaint against China appeared first on Solar Tribune.

That’s an increase of 200 percent from a year ago, as reported by state news agency Xinhua, with an additional 3.6 GW added in just the first ten months of 2013.

That means the country will reach it’s goal announced earlier this year and is on track to 35 GW of installed capacity by 2015. The focus on solar is part of China’s plan to reduce energy use per unit of GDP by 16 percent from 2011 levels.

According to Xinhua, “China has taken a number of measures, including increasing investment in clean energy to boost the share of non-fossil fuels in its power structure.”

Photo Credit: Jianan Yu, Reuters

And Bloomberg New Energy Finance analyst Charlie Cao told Bloomberg that “the proportion of renewables in the total power capacity will keep rising before 2030 on government support and declining costs.”

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In June, the EU decided to impose tariffs of 11.8 percent on Chinese solar products entering the trading area. This decision was the result of an investigation into whether Chinese companies were selling these products at below cost price to gain market share in the EU.

A Yingli installation in Spain. Credit: Yingli Green Energy

While some solar producers in the EU applauded the measure, other stakeholders argued that tariffs would have ripple effects across the industry around the world.

But in a statement this weekend, the EU Trade Commissioner Karel De Gucht said a solution had been reached.

“I can announce today that I am satisfied with the offer of a price undertaking submitted by China’s solar-panel exporters,” said De Gucht. “This is the amicable solution that both the EU and China were looking for.”

The China Chamber of Commerce Import and Export of Machinery and Electronic Products has been involved in the negotiations on the Chinese side. According to news reports, the two parties have agreed that Chinese solar panels will be sold at a minimum price of 56 euro cents per watt in the EU.

However, the minimum price is voluntary. If a Chinese company refuses to sell at the minimum price, their products will be subject to the tariff rate, which is set to rise to almost 50 percent on August 6.

“We are confident that this price undertaking will stabilise the European solar panel market and will remove the injury that the dumping practices have caused to the European industry,” said De Gucht.

“We have found an amicable solution that will result in a new equilibrium on the European solar panel market at a sustainable price level.”

This agreement is still to be approved by the European Commission.

The post EU & China settle solar trade dispute appeared first on Solar Tribune.

This government announcement is a boost for Chinese solar panel producers. Facing import tariffs in the EU and U.S., now producers should see increased demand at home.

Chinese factory workers at the plant of Astronergy Solar Energy Technology Co., Ltd. Photo Credit: Associated Press.

In 2012, installed solar capacity was at around 7 GW, so installations should grow by around 10 GW per year between now and 2015.

In a statement from the country’s State Council, according to the Wall Street Journal, the industry faces challenges but will be supported by the government.

“China’s solar industry is facing widespread operating difficulties,” the State Council said. “Currently, global demand for solar power has slowed, product exports are facing heavy resistance and the growth of the solar industry is uncoordinated,” and there are “severe overcapacity issues.”

Recently, China became the first country to exceed 3 GW of installed utility-scale solar (so, not including rooftop solar). This figure comes from Wiki-Solar, which calculated that 3.75 GW of utility-scale solar was added worldwide in 2013, with China contributing over 1 GW.

Germany is close behind, with 2.895 GW, and the U.S. is third in the ranking, with 2.895 GW of utility-scale solar.

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European solar manufacturers have accused China of selling solar panels in the EU market at below cost in a bid to gain market share. Recently the EU Trade Commissioner, Karel De Gucht, announced plans to impose import tariffs of 47 percent on solar panels coming from China.

But according to news reports, 18 EU member states – including Germany and the UK – voted against this provisional measure, with five countries abstaining from the vote and four approving.

“The results of this vote send a strong signal to the European Commission that these duties would do much more damage than good to the European solar industry,” said Paul Barwell, CEO of the UK’s Solar Trade Association.

“If duties are imposed, panel prices will rise across the board, and consumers and installers alike will lose out.”

Nevertheless, the EU Commission can still choose to impose import duties regardless of the views of member states.

Quality inspection station in module assembly at the SolarWorld manufacturing facility in Hillsboro, Oregon. Photo Credit: SolarWorld

“They (the Chinese) are not going to impress me by putting pressure on member states,” De Gucht said, according to Reuters.

After the meeting, the EU Trade Spokesman John Clancy said that “Commissioner De Gucht also made it very clear to the Vice-Minister that he was aware of the pressure being exerted by China on a number of EU member states which explains why they are positioning themselves as they are in their advisory positions towards the European Commission.”

Clancy underlined the EU Commission’s obligation to undertake the investigation, saying the Commission “does not launch anti-dumping investigations on a whim but on the basis of hard facts when there is clear harm to Europe’s companies and workers from the illegal flooding of its market by under-priced products.”

“Our trade defence actions are about getting ‘trade justice’ for our companies and workers.”

Although the EU says China did not bring any proposals to the table at these latest talks, the Chinese Ministry of Commerce (MOFCOM) says that a resolution is sought.

“If the EU were to impose provisional antidumping duties on Chinese solar panels…the Chinese government would not sit on the sideline, but would rather take necessary steps to defend its national interest,” says a news item on the MOFCOM website.

“Despite the heightened risk of the China-EU bilateral trade disputes widening and escalating, the Chinese government would nevertheless make a best effort for hope of reaching a consensus and avoiding a trade war, but this would require restraint and cooperation on the EU’s part.”

The European Commission will decide whether to impose provisional tariffs by June 6, and will make a final determination by December of this year.

The post EU-China solar trade dispute talks stall appeared first on Solar Tribune.

After discussions last week in Shanghai, the vice president of trade and competitiveness for the Solar Energy Industries Association (SEIA)  John Smirnow says “it’s time for everyone to work together toward a fair resolution of these cases.”

Smirnow said what many groups across the countries involved have been saying since the allegations of unfair Chinese government subsidies began – that “disputes within one segment of the industry affect the entire solar supply chain” and “cause a ripple effect throughout the economies of the United States, Asia and Europe.”

Photo Credit: Jianan Yu, Reuters

Industry groups from the relevant countries have agreed to a joint policy position, the Shanghai Solar Declaration, to encourage negotiations outside of the World Trade Organisation dispute resolution process.

Since 2011, solar panel manufacturers in the U.S. and Europe have claimed that Chinese companies are not only benefitting from unfair subsidies, but also selling panels at below-cost prices as a way to quickly gain market share around the world.

Proponents of this argument point to the massive drop in solar panel prices and increase in China’s market share over a short period of less than five years.

As a result, to protect domestic PV panel producers, the U.S. has imposed steep tariffs on Chinese solar goods entering the country – and the EU is about to do the same.

But according to the New York Times, this Shanghai Solar Declaration might get rid of the tariffs, but it won’t make solar panels cheaper. Instead, Chinese companies would have to “charge more while limiting the total number of solar panels they could ship,” leading to a higher price for solar panels worldwide.

Officials from all countries appear to be tight-lipped, and any further developments will take months.

The post EU, U.S. & China move to resolve solar trade dispute appeared first on Solar Tribune.

Chong Quan, China’s deputy international trade representative. Credit: Chinese Ministry of Commerce

“If the EU insists on imposing duty orders on Chinese exports and severely hurts the interests of Chinese manufacturers, the Chinese government will not stand by,” Chong Quan, deputy international trade representative with the Chinese Ministry of Commerce, told China Daily.

“We have no choice but take any measure to protect the lawful rights of Chinese businesses.”

“Once again, we call on the EU to seriously consider China’s suggestions as well as the appeal from enterprises from the EU’s upstream and downstream solar industry to cautiously use trade remedy measures. We hope the dispute can be resolved through negotiations,” Chong said.

China has been hit hard by American import duties and a global PV industry oversupply, with a 35 percent decrease in exports of solar products in 2012.

Late last year, the EU began its own investigation into Chinese PV products amid claims that Chinese PV panel producers have been selling products at below cost price and benefitting from unfair Chinese government subsidies, giving them an unfair advantage over PV panel makers in the EU.

The EU has taken the case to the World Trade Organisation and the two parties are currently in talks to resolve the dispute. The EU has until June to make a preliminary decision on whether to impose import tariffs on Chinese PV goods.

According to the Ministry of Commerce, such tariffs could impact 400,000 Chinese workers and will have a negative impact on the China-EU trade relationship.

China is a major trading partner with the EU, and imports some components for PV panels from the EU, so retaliatory measures could have negative impacts on EU solar panel makers.

According to a report commissioned by the EU-based  Alliance for Affordable Solar Energy (AFASE), imposing tariffs on Chinese PV imports would increase the cost of solar products in the EU and thus decrease demand.

The report predicts that up to 240,000 European jobs could be lost if such measures are implemented.

“The potential positive impact of duties for the EU solar producers is dwarfed by the negative impact on employment in the EU,” says AFASE spokesperson Thorsten Preugschas. “[T]he jobs created by the EU solar producers represent at the very most 20% of the jobs lost along the PV value chain.”

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BNEF surveyed seven industry analysts, who forecast that new solar capacity will increase by 14 percent in 2013, up to 34.1 GW – that’s much more positive that the only 4.4 percent growth in 2012.

“Solar demand is proving very resilient and will keep growing this year even as European markets slump,” said Jenny Chase, head of solar analysis at Bloomberg New Energy Finance in Zurich.

“A further increase in installations driven by record- low prices, however, won’t do much to help manufacturers’ margins.”

Major Chinese PV manufacturer Yingli Solar's 2MW installation in Salerno, Italy. Credit: Yingli Solar

BNEF predicts that China will jump ahead of Germany as the world’s largest solar market this year, thanks to massive support from the Chinese government.

Earlier this year, China more than doubled its annual solar capacity target for 2013 up to 10 GW, and plans to reach 35 GW of installed capacity by 2015.

The analysts also noted that Japan and the U.S. saw greater growth in PV in 2012 than most European markets, and predict that these countries will spur the industry’s expansion for 2013.

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According to Shi Lishan, Deputy Director of the Renewable Energy Office of the National Energy Administration (NEA), “[t]he reason for making the adjustment is that the PV industry has been developing very quickly.”

Lishan also noted the recent pollution issues as a reason for the target increase, saying the Chinese government is under pressure “to save energy and reduce emissions as smog worsens due to pollution.”

Chinese factory workers at the plant of Astronergy Solar Energy Technology Co., Ltd. Photo Credit: Associated Press.

In January, smog in Beijing reached hazardous levels, leading the authorities to increase the smog alert and temporarily shut down over 100 factories.

The increased target is also seen as a boost to Chinese PV panel manufacturers, who have been suffering from US import tariffs and falling prices over the past year.

“China always wants to increase solar power capacity,” Wang Xiaoting, a Beijing-based analyst at Bloomberg New Energy Finance. “The nation adjusts the targets from time to time with consideration for practical factors such as related policies and construction conditions.”

China expects to install even more solar PV after this target is attained, reaching 50GW by 2020.

The post China raises PV target by 67% appeared first on Solar Tribune.

Liu Tienan, head of China's National Energy Administration. Credit: China Daily

Reuters reports that the country’s National Energy Administration has set a goal for installed capacity of 21 GW, up from the 15 GW target noted in 2011. This figure is a revision of the targets for the current 12th five-year plan.

The increased target is thanks to a continued decline in PV prices and new regulations to boost demand.

The National Energy Administration’s plan says that renewables will account for almost ten percent of the country’s energy consumption in 2015. According to the plan, energy consumption per unit of GDP will drop by 16 percent, and carbon emissions will fall by 17 percent from 2010 levels.

This news corroborates previous claims that the Chinese government would increase domestic installation targets to reduce the pressure on producers who now face barriers (in the way of tariffs) in export markets like the EU and U.S.

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According to Bloomberg, the Ministry is investigating whether U.S. and South Korean producers have been selling polysilicon below-cost and whether U.S. firms have been unfairly advantaged by government subsidies. This news comes a month after reports that Chinese firms had filed trade complaints with the Ministry of Commerce.

The investigation will consider South Korean and U.S. imports to China between July 1, 2011 to July 1, 2012, and may go on for as long as 18 months.

This announcement is the latest round of the dispute over photovoltaics between the U.S. and China, which began when the Coalition for American Solar Manufacturing (CASM) filed anti-subsidy and anti-dumping complaints against Chinese PV imports to the U.S.

In May, the U.S. Department of Commerce set preliminary tariffs on Chinese solar cells of up to 250 percent, in addition to an earlier countervailing duty of between 2 and 5 percent. These rulings have yet to be finalised, though.

Solar cells on a production line at a Trina Solar factory. Photo Credit: Trina Solar

Gordon Brinser, president of SolarWorld Industries America, the firm heading up CASM, called the Chinese move “yet another cynical attempt by the Chinese government to bully the U.S. government by injecting politics into a judicial investigation that is sanctioned under international trade rules.”

“Today’s announcement by the Chinese government proves once and for all that China is intent on unfairly and illegally allowing its manufacturers to dominate the global solar industry,” he said. “Fortunately, when the Chinese government has attempted such blatant retaliatory actions in the past, those actions have been declared illegal by the World Trade Organization.”

Others in the U.S. solar industry were pushing for collaboration rather than retaliatory investigations. Jigar Shah, President of the Coalition for Affordable Solar Energy, called any tariffs on solar products “counterproductive.”

“We urge all countries to avoid unilateral actions that impede trade and resolve conflicts in a bilateral or multilateral context,” he said. “Specifically, we urge the U.S. and China to rise above SolarWorld’s selfish action and engage in productive dialogue to prevent this destructive trade war.”

Rhone Resch, president and CEO of the Solar Energy Industries Association, called China’s move an escalation in the trade conflict and highlighted the negative consequences for all.

“Unfortunately, these investigations will have an immediate, adverse impact on U.S. polysilicon manufacturers, regardless of the investigations’ outcome,” said Resch. “The investigations also threaten the Chinese solar industry’s access to the world’s most efficient and innovative polysilicon products.”

“Some have argued that it’s too soon to either start a collaborative dialogue or consider negotiations. We disagree—it’s never too soon to begin work on solutions and forward-thinking action,” said Resch, before offering the upcoming Asia-Pacific Economic Cooperation meeting as an appropriate forum for such negotiations.

The post China’s Ministry of Commerce to investigate U.S. polysilicon imports appeared first on Solar Tribune.

Earlier this month, the U.S. Department of Commerce preliminarily ruled to levy stiff tariffs on imports of Chinese solar cells. The Chinese claim that the U.S. measures under contention, including against solar imports, impact Chinese exports to the U.S. worth $7.3 billion.

China accuses the U.S. of using trade protectionist measures unfairly in order to shield U.S. companies from Chinese competition.

“The relevant practices constitute the abuse of trade remedy measures which undermines the legitimate interests of China’s enterprises,” China’s mission to the WTO said in a statement.

Chinese workers at the Tianxiang Solar Energy Equipment Factory in Huaibei, China. Photo Credit: Los Angeles Times

On Thursday, the Ministry of Commerce said that the U.S. had unfairly subsidised six renewable energy projects, violating the rules of free-trade. The ruling is a result of an investigation launched in November in response to Washington’s own inquiry into whether Chinese manufacturers were dumping solar cells on the market at below-cost prices.

The Ministry of Commerce announcement did not include details but an earlier statement said the investigation covered wind, solar and hydropower projects in Washington, Massachusetts, Ohio, New Jersey and California.

In Friday’s WTO filing, China requested consultations with the U.S. to resolve the dispute; the U.S. has ten days to respond to the request and must start negotiations within 30 days. If the negotiations fail, China can request a judgment from a WTO panel, which can order the U.S. to pay compensation or abandon the measures.

“China’s resort to dispute settlement is premature and not an appropriate use of dispute settlement system resources,” said Nkenge Harmon, a spokeswoman for the U.S. Trade Representative’s office.

“This step by China suggests that China does not really care what the United States does; rather, China has determined without benefit of the facts that whatever the United States does will fall short of what China would like to see,” Harmon said.

The post China files WTO complaint against U.S. solar tariffs appeared first on Solar Tribune.

Senator Rob Wyden (D-OR), chairman of the Senate Finance Committee’s Subcommittee on International Trade, Customs and Global Competitiveness, released a report documenting the U.S. loss of market share in the PV industry, primarily to China.

The report, entitled “Losing the Environmental Goods Economy to China,” looks at U.S. exports of goods and services pertaining to environmental sustainability, like wind and solar power technologies.

The key finding was that U.S., EU and Japanese exporters of environmental goods – including PV products – have been losing market share to China in most major world markets. Further, the U.S. went from a worldwide solar trade surplus of $2 billion to an almost $1.6 billion deficit in 2011.

“The report’s findings correct the contention that the U.S. continues to enjoy a trade surplus with China in solar products,” Wyden writes in the report.

Solar cells on a production line at a Trina Solar factory. Photo Credit: Trina Solar

“Overall, it supports the assertion that China’s environmental goods industries are experiencing rapid growth that industries located in other countries appear unable to duplicate, suggesting that China’s competitiveness is significantly due to its violation of norms and rules of international trade.”

Senator Wyden is a key proponent of imposing import tariffs on Chinese-made PV products. This report builds upon his contention in an October, 2011 policy brief that China’s solar manufacturers have managed to control significant world market share by charging below-market prices.

“If China is breaking trade rules to give its industries an unfair advantage, it’s important that trade rules be enforced and tariffs be applied to negate that unfair advantage,” said Senator Wyden.

Industry Group Backing

The Coalition for American Solar Manufacturing (CASM), led by PV firm SolarWorld, filed complaints of illegal Chinese government subsidies to PV firms back in October, 2011. The claims are under investigation by the Department of Commerce and the U.S. International Trade Commission (ITC).

This past week, the Coalition released a report supporting the one released by Senator Wyden’s office. The report uses data from the Department of Commerce and the ITC, as well as a prior study by GTM Research.

CASM found that the U.S. became a net solar importer in 2011, moving from a solar trade surplus with China of at least $250 million in 2010 to a deficit of $1.6 billion in 2011.

“Chinese importers often claim that the modest U.S. trade surplus in 2010 proved that China is not threatening the U.S. solar industry and economy. But it is no longer 2010, and any trade surplus is history,” said Gordon Brinser, president of SolarWorld Industries America Inc.

“Illegal dumping by massively subsidized Chinese solar producers, combined with curbed exports of polysilicon and manufacturing equipment, are decimating U.S. solar manufacturers, the supply chain and their export business.”

The Coalition argues that this unfair competition has led to at least 12 U.S. producers undertaking layoffs, going bankrupt or closing plants over the past two years.

“Evidence continues to mount that China is resolved to dominate the global solar energy market and destroy America’s solar manufacturing industry and jobs. Enough is enough. China’s illegal trade must stop,” Brinser said.

Meanwhile, the Department of Commerce once again extended its decision on whether to place tariffs on Chinese PV products entering the U.S. The Department was poised to issue a determination yesterday, but now will make an announcement on March 20.

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The plan for 2011-2015, posted on the Ministry of Industry and Information Technology website on February 24, aims to lower the cost of domestic solar power and expand the domestic PV industry. Key provisions of the plan, targeted at what the government calls “leading firms,” include reaching the following goals by 2015:

• each leading polysilicon company should increase annual production capacity to 50,000 tons
• each leading solar cell firm should reach a capacity of 5 gigawatts of annual production
• increase the conversion efficiency of monocrystalline silicon solar cells to 21 percent
• increase efficiency of polysilicon cells to 19 percent and amorphous silicon cells to 12 percent
• reduce the cost of solar power to 12 cents per kilowatt hour by 2015 and by 9 cents by 2020
• produce 80 percent of solar equipment and auxiliary materials in China

The plan does not offer an overall output goal, nor does it give details on which firms are subject to these targets.

During the last Five-Year-Plan (2005-2010), panel production grew at an annual rate of over 100 percent, with total output reaching 10 gigawatts in 2010. Chinese firms accounted for half of global production, but almost all of these panels were exported to the U.S. and Europe.

Ingot Manufacturing Facilities at Trina Solar. Photo Credit: Trina Solar

With a flat outlook for share prices in 2012 and a steep decline in global PV prices – the installed cost of panels fell by 17 percent from 2009 to 2010 alone – these increased production targets are bad news for solar firms outside of China.

According to Bloomberg New Energy Finance, the price of solar cells fell by over 50 percent in the last year, while the average price of polysilicon has fallen by 59 percent.

“In an industry that’s oversupplied, that the government announces support for so much new capacity is not a positive,” Sean McLoughlin, industry analyst for HSBC Holdings, told Bloomberg. “The news that China’s aggressive ramping up of production will continue is not helpful for Western producers and their shares.”

As of now, the two largest cell producers, and the fourth largest polysilicon producer, hail from China. But this added government support may see China’s share of the PV market grow even more.

Driving Domestic Demand

Meanwhile, some analysts in China note the need to stimulate domestic demand for PV panels. Some firms are already making panels for the domestic market because their production processes do not meet standards applied abroad, according to Wu Zhonghu, an expert at the China Energy Research Society.

But another problem is that government subsidies promote use of PV panels in rural areas, leaving the enormous urban market untapped.

“It is time for integration of the industry,” Wu Zhonghu told China Daily. “The PV solar industry has a prosperous future, but at present, there are many obstacles, including high costs, shrinking overseas markets and a lack of related laws and regulations to supervise the industry.”

The post China to expand PV supply despite falling world prices appeared first on Solar Tribune.

China's Minister of Commerce Chen Deming. Photo Credit: Bloomberg

This announcement came just days after a group of Chinese PV firms said it would file a petition to the Ministry to investigate the alleged trade violations. The group claims U.S. firms are selling polysilicon to China at below-cost prices, and that U.S. subsidies to domestic manufacturers do not comply with WTO rules.

But according to the MOFCOM statement, the inquiry is in response to a petition filed by groups representing more than just the solar PV industry. The investigation also encompasses possible U.S. subsidies to the wind and hydroelectric sectors.

“The applicants proposed that the US government’s supportive policies and subsidy measure to its domestic renewable energy industry violate WTO rules, hinder and limit the development of China’s renewable energy industry, and constitute trade barriers,” the statement said.

These actions are the latest in an escalating trade war over prices of photovoltaic products. Last month, the U.S. Department of Commerce and U.S. International Trade Commission (ITC) began their own inquiries into sales of below-cost Chinese solar cells to the U.S.

The Coalition for American Solar Manufacturing (CASM), a group of U.S. PV firms concerned about the impact of cut-price Chinese PV products, filed the petitions that instigated the inquiries.

If U.S. Commerce and the ITC find the CASM complaints to be true, then Chinese imports to the U.S. could face hefty tariffs.

Commerce must issue verdicts on the anti-dumping and anti-subsidy claims in March and May respectively. The ITC will decide whether Chinese practices harm U.S. firms by December 5.

The MOFCOM investigation will end by May 25, 2012, shortly after those in the U.S. If the Chinese investigators find U.S. practices to be in violation of WTO rules, they could retaliate by taking the case to the WTO.

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The statement came in response to last week’s allegations of unfair competition against Chinese solar firms. On October 19, the Coalition for American Solar Manufacturing (CASM) filed petitions to the U.S. government calling for antidumping and countervailing duties on Chinese solar imports.

The group, comprised of seven U.S. crystalline PV firms, is led by SolarWorld and argues that illegal government subsidies from China are destroying the U.S. solar industry.

The Chinese statement, from an unnamed Ministry of Commerce official, said U.S. antidumping actions are protectionist in nature, with negative environmental and economic consequences.

“The U.S. has no reason to criticize other countries’ efforts to improve the world’s environment, and should instead strengthen cooperation with other countries in the solar energy sphere to jointly respond to climate and environmental challenges,” the statement said.

“If the U.S. government files a case, adopts duties and sends an inappropriate protectionist signal, it would cast a shadow over world economic recovery.”

U.S. Solar Firms Hit Back

The Chinese response cited a Solar Energy Industries Association report that found a record U.S. export surplus for 2010, with exports to China exceeding imports.

But according to CASM, “the U.S. industry has been significantly harmed by Chinese imports in ways that the SEIA report did not fully address,” with little focus on “the negative impact of Chinese subsidies for finished product.”

Chen Deming, Chinese Minister of Commerce Photo Credit: Bloomberg Businessweek

Responding to the Ministry of Commerce statement, CASM called the Chinese claims unfounded and misleading.

“The Chinese government’s claims that our actions are improper and protectionist, and that its illegal subsidies and massive dumping of solar product are helping the global economy and the environment, are absurd,” the statement said.

The coalition says it is “holding China accountable for its disregard of the very trade rules it has agreed to follow. Rather than handing over the keys to the industry, CASM has decided to take a stand and defend U.S. innovation, industry, and jobs.”

CASM found the Chinese argument that the petitions detrimental to the goal of environmental protection to be hypocritical.

The group argued that the Chinese should “stiffen their environmental rules to match western standards and produce solar products using the same high environmental standards followed in the United States.”

Chinese Industry Response

In addition to the Chinese government response, Chinese solar firms have also expressed concern.

A statement from Yingli Solar confirmed they “intend to mount a vigorous defense.” Another firm, Trina Solar, “believes the allegations made by the U.S. petitioners will eventually prove to be unfounded.”

Yesterday, Mr. Kangping Chen, Chief Executive Officer of JinkoSolar noted that the petitions do not necessarily reflect the position of the U.S. government.

“We will respond in accordance with ITC & DOC guidelines,” he said. “[W]e are confident in our position and are well-prepared to substantiate our strict adherence to fair international trade practices.”

The Chinese response was translated by Reuters.

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