China says U.S. solar ruling smacks of protectionism

Sat Dec 3, 2011 10:17pm EST
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SHANGHAI (Reuters) - China said it was "deeply concerned" about a preliminary ruling by a U.S. trade body that trade practices by Chinese solar makers are hurting U.S. producers and said the decision underscored a U.S. "inclination to trade protectionism."

Such protectionism measures would hurt bilateral trade and jeopardize mutual cooperation on new energy issues, the Commerce Ministry said in a statement on its website.

The statement came after the U.S. International Trade Commission approved an investigation into charges of unfair Chinese trade practices in the solar energy sector, setting the stage for possible steep U.S. duties and ratcheting up tensions with Beijing on the green trade front.

The U.S. commission voted 6-0 that there was a reasonable indication that SolarWorld Industries America and other U.S. producers had been harmed by the imports or could have been.

"The ruling was made without sufficient evidence showing U.S. solar panel industry has been harmed and ignored defenses from Chinese firms as well as opposition from the U.S. domestic industries and other stakeholders," the ministry said.

"China is deeply concerned with the decision, which does not tally with facts and highlights the United States' strong tendency for trade protectionism."

China also hit back by saying that the U.S. should "objectively analyze why some of its solar panel firms lack competitiveness."

The vote allows the Commerce Department to continue an investigation that could lead to both countervailing and anti-dumping duties on solar cells and panels from China.

The dispute is one of several to have broken out on the environmental front, as governments seek to reduce dependence on carbon-emitting fossil fuels blamed for global climate change.   Continued...