CHINA DODGING SUN TARIFFS
Chinese Solar Companies May Move Production to Dodge U.S. Tariff
Zachary Tracer, Noember 22, 2011 (Bloomberg News)
"Chinese solar companies are considering shifting manufacturing to other countries to avoid paying tariffs that may result from a trade complaint.
"LDK Solar Co. (LDK) and JA Solar Holdings Co. (JASO) said they may move some production operations if the U.S. imposes duties on solar products imported from China. Suntech Power Holdings Co. (STP), the world’s biggest solar-panel maker, said the dispute would be ‘extremely damaging to the entire U.S. solar industry.’ …The statements…show that Chinese manufacturers are developing strategies to avoid potential duties, and that the complaint may not give U.S. solar companies the relief they’re seeking…"
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"Chinese companies may avoid the tariffs by buying solar cells from Taiwanese companies and assembling them into modules outside China…Suntech and Canadian Solar Inc., which makes panels in China, already have plants in North America, and JA Solar has an existing relationship outside China with a company to which it could outsource some manufacturing.
"SolarWorld Industries America Inc…and six unnamed U.S. manufacturers filed the trade complaint last month with the U.S. International Trade Commission and Commerce Department, asserting that import duties on Chinese imports will compensate for unfair financial support China provides to its solar industry…The U.S. imported $2.4 billion of solar panels from China in 2010…A tariff would increase prices for developers, homeowners, utilities and others who purchase solar panels in the U.S…[Analysts expect] the trade complaint will pass and tariffs will be imposed…"