China’s Feud With West on Solar Leads to Tax

[itfitzme]

This ain't right.

Escalating a long-simmering trade dispute with the West over solar panels, China plans to impose tariffs that could exceed 50 percent on a material it imports from the United States and South Korea to make the panels, its Ministry of Commerce announced on Thursday.

The decision, which goes into effect next week, is a blow to the American industry, which analysts say is China’s largest customer for solar-grade polysilicon, the main ingredient in solar panels.

The Obama administration and the European Union have been trying to negotiate settlements with China in the world’s largest antidumping and anti-subsidy trade cases.

Last fall, the United States put in place tariffs of roughly 24 to 36 percent on the Chinese imports after finding that Chinese companies were benefiting from unfair government subsidies and selling their products below the cost of production, a practice known as dumping.

http://www.nytimes.com/2013/07/19/b...eud-with-west-on-solar-leads-to-tax.html?_r=0

 

[Franticfrank]

China is really making impressive progress with renewable energy - apparently wind power has already overtaken nuclear. And solar is getting ever stronger. Still, I guess this move is no real surprise. Look at statistics and you'll see Chinese solar companies have been dealing with heavy tariffs in the US. I suppose it was a matter of time until the American firms faced the same problem.

 

[Rshermr]

China's central planning allows decesions to be made in areas that could be of major consequence to their economy. One of those overarching decesions is to support alternative energy in a big, big way. So, dumping by those firms is one way. If you see a large market, dumping kills the market for unsupported corporations in competing nations. Like, say, the US.
One of the biggest problems we have is that the energy industry in the us does not want alternative energy to succeed, for obvious reasons. And every time the US attempts to help, that industry supports politicians and their supporting cast to scream like banshees. Which they do. And we continue to watch China, and other nations like Germany, kick our collective asses in the renewable energy field. Much to the delight of the corporate controlled politicos and their ignorance based supporters.

 

[Mad Scientist]

Good thing we moved all those jobs to China huh?

 

[Rshermr]

Good if you want to see the Chinese workers employed, and the us workers unemployed.

 

[itfitzme]

"U.S. makers and exporters of polysilicon, the raw material for photovoltaic solar cells, are bracing themselves as Chinese tariffs as high as 57 percent go into effect Wednesday, part of Beijing’s retaliation for U.S. tariffs on imports of Chinese-made solar panels.

The new Chinese tariffs, announced last Thursday, single out U.S. manufacturers. When combined with anti-dumping tariffs imposed by the United States and the European Union, they could also boost prices for photovoltaic panels and slow the rapid growth of solar panel installations worldwide, industry experts say."

"The new Chinese tariffs will inflict particularly severe damage on companies such as REC Silicon, which has a state-of-the-art plant in Moses Lake, Wash., that employs more than 500 people and exports 80 percent of its polysilicon to China. It also has a plant in Butte, Mont., that employs 300 people and exports almost half of its product to China.

REC’s general counsel, Francine Sullivan, met with Sen. Jon Tester (D-Mont.) and aides to three other senators Tuesday and will meet with Obama administration officials Wednesday in an effort to speed a resolution to the widening trade dispute."

Washington Post

 

[Rshermr]

"U.S. makers and exporters of polysilicon, the raw material for photovoltaic solar cells, are bracing themselves as Chinese tariffs as high as 57 percent go into effect Wednesday, part of Beijing’s retaliation for U.S. tariffs on imports of Chinese-made solar panels.

The new Chinese tariffs, announced last Thursday, single out U.S. manufacturers. When combined with anti-dumping tariffs imposed by the United States and the European Union, they could also boost prices for photovoltaic panels and slow the rapid growth of solar panel installations worldwide, industry experts say."

"The new Chinese tariffs will inflict particularly severe damage on companies such as REC Silicon, which has a state-of-the-art plant in Moses Lake, Wash., that employs more than 500 people and exports 80 percent of its polysilicon to China. It also has a plant in Butte, Mont., that employs 300 people and exports almost half of its product to China.

REC’s general counsel, Francine Sullivan, met with Sen. Jon Tester (D-Mont.) and aides to three other senators Tuesday and will meet with Obama administration officials Wednesday in an effort to speed a resolution to the widening trade dispute."

Washington Post

it's a waiting game. The us problem is that the chinese gov will fund their side. Our companies will have no such support. Should, but politics will not allow it. So, not a good plan. But you can not let the chinese screw you forever.

 

[EdwardBaiamonte]

But you can not let the chinese screw you forever.

yes we're screwed by low Chinese prices at WalMart and on solar panels. If they offer me food and a Rolls Royce for half price I'll feel really screwed. Should I start shopping for higher prices??

 

[Whereisup]

It isn't really a secret that China's goal is to become the world's only remaining superpower and the leader of a Chinese new world order. Chinese civilization has much to recommend it, and I would not find it objectionable to become Chinese. However, I think we would be better off with more diversity, in which we had China, and the United States, and Europe, etc. as equals and all doing well.

So China has been supporting major growth in all economic sectors, trying to take control of world markets in all areas. In addition, China has been busy for some years negotiating exclusive rights to various minerals in various nations, slowly squeezing other nations there. etc.

Unfortunately, China has us by the balls. We have borrowed so much money from China to pay for our imports that China holds large reserves of dollars and American investments. Therefore, China could ruin the American economy at any time by dumping those dollars on the world's currency markets. In addition, of course, China could just nationalize all American subsidiaries in China at any time she wished.

To the argument that China wouldn't dare because America is too large a market, China has said in her news media a couple of years ago that she could easily adjust to the loss of the American market if necessary. Presumably, China would just have Chinese purchase what the factories are producing. Then, American pharmaceutical companies are now having many of their drugs manufactured in China. In a fight, China could just not allow export of those drugs to the United States, and we would suddenly be without many of our medicines.

In the Chinese press, China also reported that she now has the military equipment to suddenly destroy the American military bases near China at any time.

So it seems we need to use our Yankee ingenuity and become very clever.

Jim