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US imposes up to 250% tariff on Chinese solar cells
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
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