Solar-panel users prepare for tariffs on Chinese imports

 

Chinese solar panel manufacturers are awaiting a preliminary ruling from the US over the impositions of counter-vailing duties. The complaint was made by German solar manufacturer Solar World, with operations in the US, along with six other companies. But US companies who depend on the global supply chain are also worried about the implications of any new tariffs, as the industry braces for the possible impacts.

Solar-panel users prepare for tariffs on Chinese imports.

The countervailing duty measure is one of two types of tariffs that can be imposed on Chinese companies at the moment and the announcement will be based on a preliminary calculation of perceived trade distortions within China. Kevin Lapidus is from a leading global solar panel development company called Sun Edison, who is part of the Coalition for Affordable Solar, which opposes the case.

Kevin Lapidus, the counsel of Sun Edison, said," Well, I would like to highlight that there is goodwill between US companies working with Chinese companies. There's a lot of cross-border trade. You know, my company is at the forefront of that. And we think there are opportunities to bridge this divide. I do not want it to be seen that, by Chinese viewers or Chinese government that it's all US companies supporting this, it's quite the opposite. As I mentioned, 97% of the US job market for solar will be adversely impacted by this trade case."

But Solar World and its coalition alleges that Chinese exporters have received a plethora of preferential treatments including cash grants, discounted raw material costs, subsidized land, power and water. But the Coalition for Affordable Solar now says that Solar World itself has received well over $100m in government subsidies and from the United States.

Kevin Lapidus also said," So Solar World receives incentives, receives subsidies and the markets for solar are dependant on today, are dependant on incentives to bridge this gap. As the market matures, as the unit economics improve and as we move to grid parity. So the industry is in a state of transformation from a subsidized to an unsubsidized market. But today, as an industry globally, we do need that government support."

Dow Jones Newswires reports that solar companies here are already switching their supply chains from China to third countries, to avoid anticipated additional tariffs.

CCTV reporter Daniel said," Chinese manufacturers say they are prepared to adapt their strategies if new tariffs are imposed and hope to continue competing strongly in US markets."