Chinese Green Energy Products In The Crosshairs Of The Obama Administration

Recent testimony before the Senate Committee on Energy and Natural Resources revealed that China's capacity to generate clean energy far outstrips its use in China. Although China has made the largest investment of any country in products to produce clean energy, according to the testimony, a massive 95 percent of the production has been exported. In the United States, China's exports of green energy products have been met with two sentiments: the first is that inexpensive Chinese green energy products make renewable energy more competitive with fossil fuels; the second sentiment is that the inexpensive Chinese green energy products are supplanting green energy companies and jobs in the United States.

For better or worse, at the request of affected U.S. producers, the Obama Administration has recently launched investigations to determine whether two green energy products – solar cells and wind towers -- are violating international trade rules by selling those products at unfairly low prices (an antidumping investigation) or receiving unfair governmental subsidies (a countervailing duty investigation), thereby injuring the U.S. industry. Recently, the Department of Commerce (Commerce) announced the results of its antidumping and countervailing duty investigations.

Solar Cells:

The U.S. Petitioner: Solar World Industries America Inc., along with six other U.S. solar companies. Scope of the Investigation: The scope of the investigation covers crystalline silicon photovoltaic cells, modules, laminates, and panels consisting of crystalline silicon photovoltaic cells, whether partially or fully assembled into other products. Third-Country Panels: Modules, laminates and panels produced in a third country from cells produced in China are covered by the investigation. Certain certification requirements exist if an importer and exporter are claiming that the modules are not made in China. Failure to maintain the certification will result in having the entries included in the investigation. Preliminary Determination: Commerce calculated dumping margins ranging from 31 percent to 250 percent and countervailing (subsidy) margins ranging from approximately 2.9 percent to 4.73 percent. Final Determinations: Commerce is currently scheduled to make its final determinations in both the antidumping and countervailing duty investigations in early October 2012. Effective Date: In most antidumping and countervailing duty investigations, liability for importers...