U.S. PUTS TARIFF ON CHINESE SUN

US to impose tariff on Chinese solar panels in victory for domestic makers; American solar panel manufactuers welcome Obama administration decision, saying it exposes unfair trade practices
Suzanne Goldenberg, 20 March 2012 (UK Guardian)

"…In a much-anticipated decision, the Commerce Department… said it would impose tariffs of [2.9% on Suntech, 4.73% on Trina and 3.59% on all other Chinese solar panel manufacturers], after finding the Beijing government was providing illegal subsidies to manufacturers…The commerce department could impose heavier penalties in May, when it is due to decide whether China is dumping solar panels at prices below their actual cost.

"…[The] move did not suggest the Obama adminstration is willing to risk a trade war with China in support of struggling solar panel manufacturers…Domestic solar panel makers, who had requested the tariffs, welcomed the decision, saying it had helped expose unfair Chinese trade practices…Solar installation companies, whose business relies on Chinese-made panels, expressed relief that the small tariffs would not drive up costs…"

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"…Some industry executives had hoped for a greater show of support from the administration – even at the risk of causing a trade rift with China…[which] has now taken the lead [in solar manufacturing]…[A few] Chinese companies have acknowledged receiving cheap loans and other government support…But low-cost solar panels are also helping some sections of America's clean energy industry…

"The US made $56bn in clean energy investment in 2011, overtaking China, which invested $47.4bn…[G]rowth of the US clean energy industry was led by the plummeting costs of Chinese-made solar panels, which brought solar farms closer to the cost of electricity generated from fossil fuels…American imports of Chinese solar panels have grown…from $21.3m in 2005 to $2.65bn last year…But cheap Chinese solar panels have also put American solar panel makers out of business – and proved a political embarrassment for the Obama adminstration…"