International Trade Commission: Chinese solar imports might threaten US companies

The U.S. International Trade Commission said Friday there are indications that Chinese solar imports harm the U.S. solar industry, the latest step in an Obama administration investigation into China’s trade practices.

In a 6-0 vote, the commission said there is “a reasonable indication” that Chinese imports of crystalline silicon solar panels either injure or threaten to injure U.S. companies.

Friday’s vote, which represents the preliminary phase of the probe, allows the commission to continue its investigation. The commission must later make a final determination about whether Chinese solar imports are threatening the U.S. solar industry.

The vote paves the way for the Commerce Department, the second federal agency involved in the case, to move forward with its determination of whether China is subsidizing its solar industry and flooding the U.S. market with underpriced panels. Commerce is expected to make a determination on those two issues next year.

The investigation will ultimately determine whether the Obama administration imposes duties on Chinese solar imports.

SolarWorld Industries America, a solar panel manufacturer, and six other solar companies filed petitions in October with the administration alleging that China is flooding the U.S. market with underpriced solar panels and subsidizing its solar industry in violation of World Trade Organization rules.

China’s efforts, the company said, are burdening U.S. solar manufacturers and are partly responsible for a number of U.S. companies going out of business or downsizing in the last year.

SolarWorld praised the vote Friday.

“The ITC’s unanimous ruling underscores what American solar manufacturers have argued for months: Without any production cost advantage, dumping by Chinese solar manufacturers and massive subsidies by the Chinese government are enabling Chinese producers to drive out U.S. competition,” SolarWorld President Gordon Brinser said in a news release. “Today’s ruling further erodes the credibility of denials by Chinese manufacturers and their importer allies in this case.”

But not all U.S. solar companies support the investigation. Some have raised concerns that the probe could make solar panels more expensive and prompt retaliation from China.

Friday’s vote comes on the same day that 59 Democrats — 53 representatives and six senators — wrote to President Obama raising concerns about China’s solar trade practices.

“We urge you to take all available measures to expeditiously investigate these allegations and take swift and appropriate action based on those findings,” the lawmakers wrote.