China states United States Section 201 expansion will misshape worldwide trade

Feb 7, 2022 04:42 PM ET
  • Head of state Joe Biden's transfer to extend tariffs on imported solar modules as well as cells will misshape international trade, China's commerce ministry has stated.
China states United States Section 201 expansion will misshape worldwide trade
Image: Brian Doll, SOLV Energy

The United States federal government prolonged the Section 201 steps regardless of "strong resistance" locally and internationally, the Ministry of Commerce stated in a declaration, adding that the policy not only "does not aid the healthy and balanced advancement of the domestic sector in the US", yet likewise "misshapes the normal international trade order of photovoltaics as a new power item".

Joe Biden introduced on Friday that the Section 201 tariffs will certainly be extended for four even more years, with bifacial panels continuing to be exempt from the duty, while the tariff rate quota for cell imports has actually been doubled to 5GW.

The president stated the safeguard action on cell imports "remains to be necessary to stop or correct the significant injury to the residential industry". He has actually likewise instructed the US Trade Representative to investigate the possibility for imports from Canada and also Mexico to be excluded as long as they do not undermine the efficiency of the tariffs.

However, China's commerce ministry claimed it hopes the United States will certainly take "concrete activity" to help with open market in new energy products as well as to jointly attend to climate adjustment.

But the proceeded exemption for bifacial panels will rate by Chinese PV makers, with the majority of module imports to the United States in recent years being bifacial.

The exemption was additionally applauded by the Solar Energy Industries Association (SEIA), which kept in mind that bifacial panels are still not available "at range" by United States suppliers.

Replying to the president's news, Gregory Wetstone, CEO of the American Council on Renewable Energy (ACORE), claimed the trade body is motivated to see the alteration of the tariffs. "Leaving out bifacial photovoltaic panels as well as elevating the yearly limit on duty-free solar cell imports to 5GW are reasonable actions that will aid our clean power sector to proceed growing at the rate we need to reach our climate objectives."

Tom Buttgenbach, CEO at US solar designer 8minute Solar Energy, stated that while tariffs "are not the very best strategy" to addressing solar supply chain challenges, "we appreciate the administration's factors to consider of the issues at play within their choice and believe the boost in the quota is justified".

In other places, Chinese solar suppliers are also readied to be impacted by new import tariffs in India that will certainly see the nation enforce a 40% duty on modules and also 25% duty on cells as of 1 April.

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