China Retaliates on US Dumping Investigation on Solar Panels

The Ministry of Commerce of China (MOFCOM) released the Announcement No. 69 on November 25, deciding to initiate a trade barrier investigation into policy support and subsidies for the US renewable energy sector, based on the Foreign Trade Law of PRC and the Investigation Rules of Foreign Trade Barrier of Ministry of Commerce of PRC.

The investigation was filed based on petition by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products and the China New Energy Chamber of Commerce. The petitioner pointed out that, the US government has provided policy support and subsidies for its renewable energy industry, which violated WTO rules, and blocked and restrained the development of China’s renewable energy industry as a trade barrier. The petitioner requires MOFCOM to initiate trade barrier investigation, and eliminate unfavorable influence of US supportive policy and subsidies on China’s renewable energy industry, so as to maintain fair trade environment.

Through review, MOFCOM has decided to probe into 6 supportive policies and subsidy measures alleged by the petitioner. MOFCOM will conduct investigation based on China’s laws and regulations, to evaluate the impact of US supportive policies and subsidies for its renewable energy sector on China’s renewable energy sector.

According to rules, the investigation will be concluded by May 25, 2012.