US solar plan could work: insider

By Wang Xinyuan Source:Global Times Published: 2013-9-25 23:03:01

A proposal by a US solar energy industry association is expected to get support from Chinese solar energy manufacturers if it can solve the current trade dispute between the two countries, a Chinese solar panel maker and industry expert said on Wednesday.

"In general, we support any solutions through negotiations," Fan Zhenhua, director of legal affairs at Yingli Solar, told the Global Times on Wednesday, in response to a proposal brought by the US Solar Energy Industries Association (SEIA) in order to solve the ongoing trade dispute between the US and China.

The Washington-based SEIA proposed a plan on Monday, under which the US would remove its tariffs on solar cells from China and China would lift its duties on US-made polysilicon, an important component of solar cells.

Some Chinese companies are currently buying solar cells from other countries in order to avoid the US tariffs on solar cells made in China. Another part of the SEIA's proposal is for some of this money to be spent instead on establishing a fund in the US to help American solar cell manufacturers to grow in the US market.

This would also help reduce costs and supply chain distortions for Chinese companies, the SEIA said.

Another provision of the settlement calls for the establishment of a Solar Development Institute, which would also be funded by Chinese manufacturers.

The institute would focus its resources on expanding the US solar market for all participants and growing the US solar manufacturing base, according to the SEIA.

"While we are encouraged that negotiations to resolve the solar trade dispute are continuing in earnest, the discussions appear to be focused right now on a minimum price and/or quotas," which is a "misguided approach," John Smirnow, SEIA vice president of trade and competitiveness, was quoted as saying in a statement from the SEIA.

Any effort to promote the development of green power technology is positive, said Meng Xian'gan, deputy director of the China Renewable Energy Society.

However, "the key is the US government's attitude" toward such a proposal by the US industry association," Meng told the Global Times Wednesday, noting that the safety of the funds from Chinese solar companies needs to be guaranteed by US law and regulations.

China's Ministry of Commerce (MOFCOM) was not available for comment on the SEIA's proposal when contacted by the Global Times.

The US announced in November 2012 that it would impose anti-dumping duties on solar panels imported from China, ranging from 18.32 percent to 249.96 percent, and countervailing duties of 14.78 percent.

In July, China set anti-dumping tariffs ranging from 53.3 to 57 percent on US polysilicon imports.

Then, on September 16 MOFCOM announced 6.5 percent countervailing duties on solar-grade polysilicon from US firms including Hemlock Semiconductor Corporation and AE Polysilicon Corporation, following an investigation, which found that the companies had unfairly received US government subsidies.



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