China blows fuse over US levies on solar panels

Beijing:  China said it lodged a complaint at the World Trade Organisation over US anti-subsidy duties affecting $7.3 billion (Dh26.80 billion) of Chinese products such as solar panels, thermal paper and steel sinks.

During probes to determine whether Chinese companies received illegal government aid, the US acted "inconsistently with WTO rules and rulings in many aspects," China's mission to the WTO in Geneva said in an emailed statement yesterday. The US "repeated its wrongful practice" during its recent anti- subsidy investigation on Chinese solar cells.

The complaint comes just eight days after the US Commerce Department imposed duties of as much as 250 per cent on Chinese solar imports, siding with companies including SolarWorld that said the goods were sold below the cost of production. China said the following day it was "seriously concerned" by the US move, which it labelled an unfair trade practice.

While the US decision was meant to provide a boost to the US solar-manufacturing industry, where four companies filed for bankruptcy in the past year, it may further inflame trade tensions, Shyam Mehta, an analyst with GTM Research in Boston, said last week.

The US Commerce Department also made a preliminary finding in March that China gives illegal subsidies to exporters of crystalline silicon photovoltaic cells and solar panels.

The US applied tariffs of 2.9 per cent on Suntech Power Holdings and 4.73 per cent on Trina Solar, while all other Chinese producers and exporters must pay a levy of 3.61 per cent.

Dispute redressal

China's complaint is its seventh against the US, which has lodged 13 cases against the Asian nation — half the number of all WTO complaints against the Chinese government.

Yesterday's request for consultations is the first step in the case and means the two governments must now hold talks for at least 60 days in a bid to resolve the dispute. After that, China can ask WTO judges to investigate the complaint. Rulings are typically made within six months, after which either side can appeal.

• $7.3b of Chinese products marked for US duties
• 250%: tariffs on some solar imports from China
• 60: days for US and China to negotiate settlement