Solar Power Cells, Hot Water, Energy, Collectors

US-Chinese Trade War on Solar Panels Killed Solyndra

01.01.70

The US Department of Commerce’s investigation focuses on whether these subsidies violated international trade laws and led to a glut of solar panels on the US market.  If China’s subsidies are found to be in violation, Solyndra will be declared a casualty of a trade war in renewable energy instead of a political albatross for the Obama administration.  Without US subsidies on par with China’s, China can effectively flood the market and erode US manufacturing by gutting the US customer base.  In the long run, it could lead to a Chinese monopoly on solar panel manufacturing, and Chinese control of the larger solar energy industry.

Based on preliminary evidence, the Commerce Department is considering tariffs of 50 to 250 percent on Chinese solar panels.  Chinese manufacturers are not optimistic about winning the case, and are considering their options. Some Chinese manufacturers plan to spread their production to South Korea, Taiwan and the United States to soften the blow of potential tariffs and gain favor in Washington.  Other manufacturers are considering retaliation by filing trade cases of their own with China’s Commerce Ministry.

Source: Triple Pundit