Sunday, September 29, 2013

Establishment of a U.S.-China Solar Agreement Possible?

The Solar Energy Industries Association has proposed a solution for current trade issues which exist between China and the United States and which have adversely effected the Solar Industry to date. Their solutions include the following suggestions to help reach agreement between to the two world powers and help encourage fair and mutually beneficial trade:

  • Chinese companies would agree to create a fund that would benefit U.S. solar manufacturers directly and help to grow the U.S. market.  Money for the fund would come from a percentage of the price premium Chinese companies are currently paying to third-country cell producers to get around U.S. trade sanctions, reducing costs and supply chain distortion for Chinese companies.
  • The Chinese government would also agree to end its antidumping and countervailing duty investigations on U.S. polysilicon exports to China, and remove the threat of artificial cost increases in a key raw material in the solar value chain, benefiting not just Chinese solar companies but all users of solar energy. 
  • In return, the U.S. antidumping and countervailing duties orders would be phased out.
  • The proposal also calls for a safeguard mechanism designed to offset any surge of Chinese solar modules into the U.S. market.
  • As an added step, SEIA believes the U.S. government should take all steps necessary to ensure that federal procurement opportunities are provided to domestic solar manufacturers in recognition of the importance of U.S. solar manufacturing to the nation’s long-term energy security.
Read More at Renewable Energy World and SEIA.org

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