May 28, 2012
Penny

Solar Flares: US & China battle it out over solar tariff

Things are definitely heating up between China and the USA when it comes to the trade front. With both nations trying to safeguard their own business interests, it seems that there is a full-on battle between two economic giants.

This is of particular significance in a world where many nations are suffering from a downward economic spiral and are trying hard to prevent the slide. While the planet is turning towards alternate energy and renewable sources to reduce on both domestic and business electricity prices, and cut down on both emissions and bills, the field of solar energy and trade has become the latest trade battleground.

Recently, the US upped the tariff on some solar panels and products that were produced in China to as much as 31 percent to ensure that domestic products stood a chance in the highly competitive solar market. The accusation from US authorities was that the Chinese were selling the solar panels and units at below-acceptable costs and that the US was fast turning into a ‘dumping ground’ for Chinese solar products.

The decision has obviously started a whole new diplomatic row as Chinese Commerce Ministry has subsequently released a statement in which he claims that six clean-energy projects in the US violated international trade law. While he refused to give further details, for now the battle lines seem to have been clearly drawn.

Many believe that the US decision to up the tariff is bad for the domestic market as well, since increased costs mean a hindrance to growing solar energy field which would also affect the $3 billion US market that supplies and licenses Chinese solar firms.

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