China launches polysilicon import probe
December 20, 2012 Category Alternative energy, Environment
China began a probe to determine whether it will impose retroactive anti-dumping duties on solar-grade polysilicon imported from the U.S., South Korea and the European Union. In line with the investigation, the Ministry of Commerce will also decide whether to impose retroactive anti-subsidy duties on polysilicon, the raw material used to make solar panels, from the U.S. and EU, it said in a statement. U.S. and South Korean suppliers have to provide monthly data on the amount and value of polysilicon they sold to China between January and October this year. They have to continue doing so till the preliminary findings by the Ministry are announced. European suppliers have had to do so since May. The move comes after the U.S. slapped hefty punitive duties on Chinese solar panels and Europe launched similar anti-dumping and anti-subsidy probes on Chinese products. Analysts warn the probe, which could benefit domestic polysilicon makers such as Jiangsu Zhongneng Polysilicon Technology Development Co, a unit of Hong Kong-listed GCL-Poly Energy Holdings, may put pressure on Chinese solar panel makers, who will face higher raw material prices if tariffs are levied, the Shanghai Daily reports.
Zhou Shijian, Senior Trade Expert at Tsinghua University, said: “China is not willingly making the move, but it’s the only countermeasure that the Chinese government can take when the U.S. insists on the hefty tariffs, and when negotiations with the EU did not solve the dispute.” He added that the entire global solar industry would be badly hurt amid an escalating trade war. Zhou said one way out of solar disputes between China and the West is to exploit China’s domestic market, as 90% of the country’s solar grade polysilicon is imported and 90% of the finished products are exported, with the EU and the U.S. the biggest export destinations. China imported 64,600 metric tons of polysilicon in 2011, up 36% from a year earlier, with a total import value of USD2.59 billion. The U.S. and South Korea accounted for 60% of China’s imports in 2011, but low prices from these sources saw 80% of domestic producers suspend operations as well as 5,000 job losses. Gao Honglin, Deputy Secretary General of the China Photovoltaic Industry Alliance, said that the move by the Commerce Ministry will have a beneficial effect on domestic polysilicon producers. Li Junfeng, Chairman of the China Renewable Energy Industry Association, expressed opposition to all types of trade remedies in the solar industry that drive up costs.
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