China rejects US antidumping ruling on solar panels

The Chinese government on Friday called a U.S. antidumping ruling on makers of solar panels "unfair," warning that higher tariffs would damage efforts to promote clean energy in both nations.

A Chinese official said the decision by the Commerce Department on Thursday sent a "negative signal" about trade protectionism with a policy that would hurt Chinese companies and U.S. consumers, especially as demand increases for solar panels and other types of renewable energy products. 

"The U.S. ruling is unfair, and the Chinese side expresses its extreme dissatisfaction," said Shen Danyang, a Commerce Ministry spokesman, in a statement.

"By deliberately provoking trade friction in the clean energy sector, the U.S. is sending the world a negative signal about trade protectionism," Shen said. "U.S. tariffs would hurt both countries because China imports a large amount of raw materials and equipments from the U.S. to produce solar panels and exports such goods to the U.S."

The Obama administration ordered U.S. Customs and Border Protection to impose tariffs of between 31 and 250 percent on solar imports from various Chinese companies after determining that China is flooding the market with underpriced panels.



China and the United States have agreed to work together on clean-energy initiatives, but each nation accuses the other of subsidizing their own manufacturers.

The decision is a victory for solar panel manufacturer SolarWorld Industries America, which, along with several other manufacturers, pressed the administration to impose the tariffs last year.

The company accused China of violating World Trade Organization rules, making it difficult for U.S. companies to compete.

Shen didn't say how the Chinese government would respond to the U.S. ruling. 

The trade case has divided with U.S. solar industry, with some firms opposing the case, warning that China could retaliate with higher tariffs and slow the industry’s growth.

Commerce is expected to make a final decision on whether China is unfairly subsidizing its panels in June. The International Trade Commission will then need to finalize its finding that Chinese solar imports harm the U.S. solar industry before a final order can be issued. An ITC decision is expected in July.