Thursday, September 6, 2012

Blog 2: E.U. Begins Anti-Dumping Case on China


             Keith Bradsher explains that the European Union has opened an anti-dumping case against Chinese solar panel companies. With last year’s imports worth $26.5 billion, a whole 6.5% of Europe’s imported goods from China, some are saying these products are being exported for a lot less than what it costs to make them. In light of the daring investigation, the Minister of Commerce spokesman  in China has warned that this action may have detrimental harm on the global development of clean energy. Not only that, but this is also feeding the fire to the ongoing trade battle between the U.S. and China; in March an anti-subsidy tariff was placed on China as high as 4.73%, and an anti-dumping tariff was added in May against the solar panels dipping as low as 31%. The Chinese have also accused American polysilicon producers of unfair trade techniques and are already threatening to place steep tariffs on them. Polysilicon is a key resource in the making of solar panels, and since the anti-dumping case covers everything from completely assembled solar panels to the cells and wafers that are the basic components of these panels, American producers may find themselves spending more to ship polysilicon. Alan Wolff, the leading trade lawyer in the world, is calling this the biggest anti-dumping case ever. The European case is slightly altered from that of the American case in that Europe’s is limited to anti-dumping and does not include an anti-subsidy charge, and not to mention the wide spectrum of items involved (cells, wafers, etc.). 

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