US imposes up to 250% tariff on Chinese solar cells

Discussion in 'China' started by Armand2REP, May 20, 2012.

  1. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    US imposes up to 250% tariff on Chinese solar cells

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    On May 17, the US Department of Commerce announced a preliminary verdict on antidumping rates of between 31.14%-249.96% against Chinese solar cells and components. Analysts note that the high tariffs will kill the cost advantage of Chinese photovoltaic producers, many of which may exit the market in the next three to six months.

    On Oct. 19 last year, the Coalition for American Solar Manufacturing, consisting of seven US enterprises headed by Solar World, filed a complaint with the US commerce ministry and the US International Trade Commission, asking the federal government to impose tariffs of over 100% on imported solar cells made in China.

    In March this year, the commerce department announced the preliminary verdict on Chinese photovoltaic products, with tariff rates ranging from 2.9%-4.73%, an unexpectedly low figure which boosted the share prices of Chinese photovoltaic firms at the time.

    Now following the announcement of the antidumping duties on Thursday, the share prices of US solar energy firms jumped, including a rise of 9% for First Solar and 14% for Sun Power. The commerce department will publish the final verdict for antidumping and antisubsidy duties in early October.

    Greentech Media, a professional solar energy technical website based in the United States, believes that the combination of antidumping and antisubsidy duties exceeding 35% will neutralize the cost edge of Chinese manufacturers vis-a-vis their American counterparts. However, Chinese enterprises can establish overseas factories or outsource production to Taiwanese manufacturers at costs 6%-12% higher in order to dodge the high tariffs.

    CASE of the US, which consists of 25 photovoltaic firms, has objected however to the punitive duties on Chinese-made photovoltaic products, saying that free competition is conducive to the development of the US photovoltaic industry.

    Charles Yonts, research director of financial services group CLSA Asia-Pacific Markets, notes that photovoltaic firms worldwide are struggling in the present economic environment. He points out that the production cost for solar cells has reached US$0.075 or even US$0.09 per watt. Some Chinese firms are selling at US$0.077 per watt, lower than production cost and that some Chinese photovoltaic firms listed in the US are in dire financial straits. He believes that in three to six months, many Chinese photovoltaic firms will go under and that the Chinese photovoltaic industry will develop normally only after two thirds of existing firms have exited the market.

    US imposes up to 250% tariff on Chinese solar cells|Markets|Business|WantChinaTimes.com
     
    Oblaks, Apollyon and nrj like this.
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  3. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Hope Indian Govt will also soon approve the proposed high duty on Chinese power equipment including those cheap PVs.
     
  4. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    Obama finally got some ballz on China.
     
  5. Apollyon

    Apollyon Führer Senior Member

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    PRC was funding / subsidizing mainland Solar Cell Manufacturers, they were producing these so cheep that it was impossible to compete against.
    Chinese were trying to create a Monopoly ... i say well done US .. :nod:
     
  6. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    I think the Solyndra debacle finally made up his mind.
     
  7. kickok1975

    kickok1975 Stars and Ambassadors Stars and Ambassadors

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    250% Tariff is just for a few small companies. Big companies like Suntech, Yingli are at 30% rate. This tariff is not done deal yet until approval by the end of the year. US market only accounts 11% of world share, not as big as you thought. Do some research before getting too excited, Armand2REP
     
    Last edited: May 20, 2012
  8. Tronic

    Tronic Stars and Ambassadors Stars and Ambassadors

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    Why place tariffs on solar cells? It is for everyone's benefit if the Chinese can make this technology on the cheap, as they cost quite a handful! If anything, other products should be slapped with tariffs, not solar cells! Solar cells are a necessity for so many reasons.
     
  9. badguy2000

    badguy2000 Respected Member Senior Member

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    well, the biggest market of solar cell in the world is China, instead of USA...

    the imposed tarrif just prove one case that USA's solar cell industry has already lag behind china so much that it can not survive without the proteciton of its government, just like flowers in greenhouses.
     
  10. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    Because USA cannot compete at the prices China sells at. USA wants to atleast keep the
    domestic market forget competing in exports.
     
  11. badguy2000

    badguy2000 Respected Member Senior Member

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    more and more industries of Yankees have to survive under the protection of its government....

    it just proves how Yankee's economy is losing its competitioness and becoming a loser!
     
  12. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    Unfortunately you are right. Maybe Kissinger was not so smart after all.
     
  13. drkrn

    drkrn Senior Member Senior Member

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    is 11% share by one country small amount???
     
  14. J20!

    J20! Senior Member Senior Member

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    Oil, gas and coal wins again and their subsidies continue. So much for g"going green". America only shouts out for green technologies when it suits them, otherwise its the big gas guzzlers they love so much. All those US companies that install solar panels can look forward to a sloooooow year. And its 31% for the big hitters who submitted for investigation, the ones who really matter.
     
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  15. Tronic

    Tronic Stars and Ambassadors Stars and Ambassadors

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    Than the US does not practice what it preaches.
     
  16. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    Considering all of China Inc. companies survive under protection of its government and major subsidation.doesn't look good.:rolleyes:
     
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  17. badguy2000

    badguy2000 Respected Member Senior Member

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    according to you logic ,after Chinese government gifted sooooo many subsidiation to CHines enterprises,
    why CHinese government has sooo big a fisical surplus while USA government has such a big deficit?
     
  18. Tronic

    Tronic Stars and Ambassadors Stars and Ambassadors

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    Because, they have been at war for more than a decade, and more importantly, they still outspend you in every field by a very large margin. Duh.
     
  19. lcatejas

    lcatejas Regular Member

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    Good Step :thumb:
     
  20. s002wjh

    s002wjh Senior Member Senior Member

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    i doubt it will get pass the senate/other department. green energy is one thing i hate to see the tariff.
     
  21. G90

    G90 Regular Member

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    :rofl: I still remember the days when americans and germans wanked on "green energy" and desperately to promote "green techs" and "climate change"to believe as if its their opporunties to make big bucks, only to figure out the cake have all been eaten by China laterly:rofl:

    When a technologies is relatively new and the west dont enjoy a significant (50-100+ years) head-lead, then they have basically zero chance against China in R&D:cool2:
     

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