SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

CHANNEL BY TOPICS


QUICK LINKS




Will Valentine's Day Visit of China's Xi to White House Result in Solar Trade War Cease Fire?

Solar Power

Welcome to
Solar Power

Solar Power - Featured Article

February 14, 2012

Will Valentine's Day Visit of China's Xi to White House Result in Solar Trade War Cease Fire?

By Cheryl Kaften
TMCnet Contributor

Share

A pacifist group of 45 solar industry CEOs has written a letter to U.S. President Barack Obama in the hopes that the visit of Chinese Vice President Xi Jinping to Washington, D.C., this week will result in a break in hostilities rather than an escalation of a trade war that, the group warns, could lead to losses in American sales, installations, and jobs. Xi will meet with the POTUS, as well as Vice President Joseph Biden, Secretary of State Hillary Clinton, and several other senior Cabinet officials, on February 14.


The U.S. Department of Commerce is scheduled to rule on March 2 on whether to impose import duties on Chinese-made photovoltaic modules, following allegations by Hillsboro, Oregon-based  SolarWorld USA and the seven other manufacturers of crystalline silicon solar cells and panels that comprise theCoalition for American Solar Manufacturing (CASM) that the solar systems are being “dumped” — sold at below-market rates — in the United States.

In retaliation, last NovemberChina's Commerce Ministry announced its own trade probe into whether U.S. renewable energy subsidies represent an “unreasonable” trade barrier, in violation of World Trade Organization rules. Minister of Commerce Chen Deming commented, "Once there is any bad consequence from the investigation, we are ready to take measures.”

Official photos of U.S. President Barack Obama and China’s Vice President Xi Jinping

However, the Coalition for Affordable Solar Energy (CASE) wants a total cease in hostilities. It has cautioned that the U.S. imposition of tariffs on Chinese-made modules would “slow the growth in domestic demand for photovoltaic systems,” resulting in the loss of as many as 60,000 American jobs. CASE is an organization that represents many non-manufacturers, such as retailers and installers, which are concerned with“making affordable solar energy a reality.” The group adamantly opposes the antidumping and countervailing duty petitions submitted to the Commerce Department and the U.S. International Trade Commission by SolarWorld and CASM.

In a letter sent to President Obama on February 13, the solar CEOs—who represent the CASE point of view—strongly urged him “to discuss the mutual benefits of renewable energy development, especially solar photovoltaic technology,” when he meets with Xi.

Characterizing the U.S. solar industry as “an American success story,” they expressed optimism that Obama and Xi “will discuss the mutual interests that America and China have in regard to expanding the use of solar technology,” noting, “This is especially important in light of the potential for a mutually destructive trade war, as both nations consider tariffs and duties on each other’s imports of solar technology.”

The CEOs also stated, “We believe that you and Vice President Xi have a unique opportunity to avoid such a trade war and find agreement that benefits the solar industries in both countries.”

The signatories of the letter include the leadership of some of the nation’s largest solar manufacturers and installers: AES Solar, MEMC/SunEdison, GT Advanced Technologies, REC Silicon, Rosendin Electric, Sungevity (News - Alert), SunRun Inc., and Swinerton, Inc.

A full copy of the letter appears below:

 

February 13, 2012

The Honorable Barack ObamaPresidentThe White House1600 Pennsylvania Avenue NWWashington, DC 20500

Dear Mr. President,

In anticipation of your upcoming meeting with China’s Vice President Xi Jinping, we are writing to urge you and the Vice President to discuss the mutual benefits of renewable energy development, especially solar photovoltaic technology. We are at a crucial time in the development and growth of the solar industry, with broad benefits for both countries and the rest of the world.

Our companies represent all segments of America’s solar industry. Together, we employ thousands of workers. Our companies manufacture polysilicon, the raw material for most of the solar cells sold all over the world. Our companies manufacture machinery and equipment used to produce solar cells and to utilize the electricity they generate. Our companies develop solar projects, large and small. We install solar panels on residential and commercial structures and build utility-scale power plants. In all of these activities, our companies employ thousands of skilled workers, all of whom are proud to be a part of such an important industry, especially as we face constraints in existing energy resources.

The U.S. solar industry is an American success story. While U.S. jobs increased by less than 1 percent last year, jobs in the solar industry increased by nearly 7 percent and are expected to grow by 24 percent this year. Further, in 2010 (the latest year for which we have data) the U.S. had a positive balance of trade with China of $400 million. The trade case brought by SolarWorld, while in SolarWorld’s interest, threatens the success of the U.S. solar industry and tens of thousands of jobs.

We are hopeful that you and Vice President Xi will discuss the mutual interests that America and China have in regard to expanding the use of solar technology. This is especially important in light of the potential for a mutually destructive trade war, as both nations consider tariffs and duties on each other’s imports of solar technology.

We believe that you and Vice President Xi have a unique opportunity to avoid such a trade war and find agreement that benefits the solar industries in both countries.

Mr. President, we very much appreciate all of your hard work and policies in support of renewable energy and hope that, together, America and China mobilize to expand the use of solar power.


Cheryl Kaften is an accomplished communicator who has written for consumer and corporate audiences. She has worked extensively for MasterCard (News - Alert) Worldwide, Philip Morris USA (Altria), and KPMG, and has consulted for Estee Lauder and the Philadelphia Inquirer Newspapers. To read more of her articles, please visit her columnist page.

Edited by Rich Steeves

View all Solar Power Articles >>>

Solar Power Related Articles









Technology Marketing Corporation

2 Trap Falls Road Suite 106, Shelton, CT 06484 USA
Ph: +1-203-852-6800, 800-243-6002

General comments: [email protected].
Comments about this site: [email protected].

STAY CURRENT YOUR WAY

© 2024 Technology Marketing Corporation. All rights reserved | Privacy Policy