Business / Opinion

Countering US trade protectionism

By Wang Li (China Daily) Updated: 2014-02-26 07:15

Anti-dumping and anti-subsidy investigations into Chinese solar energy products will hurt jobs and industries in both countries

Facing competitive pressure from the rise of Chinese industries, the United States has arbitrarily imposed trade relief measures against China's clean energy exports instead of allowing fair market competition.

On Feb 14, the US International Trade Commission ruled that solar energy products imported from the Chinese mainland and Taiwan have caused "material injury" to US producers, which has paved the way for the Department of Commerce to set preliminary duties in the months ahead. This time the investigations will include almost all kinds of crystalline silicon photovoltaic products, suggesting that trade disputes between China and the US will be more extensive and frequent in the future.

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This is the second time within two and a half years that the US has initiated anti-dumping and anti-subsidy investigations into Chinese solar energy products. Because the US Department of Commerce's previous ruling only referred to photovoltaic cells imported from the Chinese mainland or photovoltaic modules using mainland photovoltaic cells, many enterprises turned to OEM photovoltaic cells produced in Taiwan to offset the high penalties imposed on mainland products.

Yet this time the scope of the new investigation has been extended in order to block the Taiwan import channel. If the US Department of Commerce finally decides to include Taiwan's solar energy products in its sanctions, the cost performance advantage of Chinese mainland's photovoltaic modules in the US market will be further undermined.

Anti-dumping and anti-subsidy investigations into China's new energy products are unjustified and irresponsible, which is typical of US trade protectionism. The dispute over economic interests is only the superficial cause of investigations. The US is resorting to such measures in a bid to keep its dominant position in the high-tech field. It is reluctant to see the rise of China's technological industries, as they may threaten the US' pole position.

China and the US almost match one another in new energy, and through the investigations, the US is seeking to contain China's rapid development in this sector, in order to retain the final say in setting international technological standards and maintain its dominant position in new energy.

With the global focus on establishing a green and low carbon economy, each country bears the responsibility of reducing its carbon emissions. Upgrading domestic industries and adjusting the economic structure have become urgent tasks for both China and the US. Thus promoting their new energy industries is a necessary development choice for both countries.