U.S. adds anti-dumping tariffs to Chinese solar panels
Washington, D.C., United States (4E) – The U.S. Commerce Department has taken action against China’s communist government illegally dumping its products on America’s markets by imposing a 31 percent tariff on solar panels.
Officials say that Chinese companies will have an opportunity to challenge the new ant-dumping tariff before it takes effect later this year.
U.S. solar panel makers requested action from the Commerce Department because Chinese companies were selling panels on the U.S. market at below-market prices.
China quickly responded to the tariff, with Chinese state television alleging it was protectionist, “unreasonable and without basis.”
The Commerce Department’s ruling further raised trade tensions, which were already running high over issues such as China’s manipulation of its currency, its imports of Iranian crude oil and its tight export quotas on rare-earth minerals that are critical to the manufacture of electronics.
In addition, Chinese state television anchors noted that the tariffs mean that Chinese companies might withdraw from U.S. markets.
China practices state capitalism in contrast to free market democratic capitalism. The key difference is that China’s communist government owns a share of most businesses and factories and takes part of the profits, while the U.S. government does not own businesses and factories and depends on taxes from business for revenue. The U.S. Commerce Department has often accused China’s government of illegally subsidizing its factories, including solar panel makers, which makes it difficult for businesses in the U.S. to compete.
Chinese companies affected by the anti-dumping tariff include Suntech Power Holdings Co., Trina Solar Ltd. and Yingli Green Energy Holding Co.
The Commerce Department in March imposed anti-subsidy tariffs ranging from 3 percent to 5 percent on Chinese solar companies.