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Investigation Finds Evidence Chinese Solar Companies are Selling Below Cost

01.01.70

It looks likely that a U.S. government investigation into the pricing of solar panels by companies in China will find that they are selling below cost, perhaps aided by government support.

A source involved in the investigation, which is part of a trade dispute initiated by a complaint from seven U.S. solar panel makers, says that analysis of available data suggests that the costs of making the solar panels are higher than the prices companies in China are selling them for. They're able to survive, he says, because they have better balance sheets than their competitors, and can afford to sell at a loss, at least temporarily.

The results of the study are being prepared for publication, and could be out next month. The U.S. solar panel makers who asked for the investigation have asked the U.S. government to impose tariffs that would double the price of solar panels imported from China, saying that unfair pricing has hurt their ability to be profitable. The U.S. Department of Commerce is expected to announce its initial findings, and its decision about imposing a tariff, as early as this month. The top solar panel manufacturers in China have denied any wrong-doing, and the Chinese government is threatening to apply tariffs of its own on solar panel related materials and equipment imported from the U.S.

Source: Technology Review (blog)

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