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China should hit back at US ruling on solar cells (2)

By Zhou Xiaoyuan (People's Daily Overseas Edition)

16:59, May 23, 2012

Comments from Chinese experts:

Lin Boqiang, director of China Center for Energy Economics Research at Xiamen University

China exports 90 percent of its photovoltaic products and China's photovoltaic industry relies on overseas market too much. This action launched by the United States will heavily affect China, and if the European Union follows up, the industry will inevitably be shuffled. Facing the anti-dumping of the United States, some large-scale photovoltaic enterprises of the Jiangsu Province may not be affected much, but it is certain that small and medium-sized enterprises will experience a shuffle.

Han Xiaoping, chief information officer of

This action launched by the United States is aimed at recovering the United States' domestic manufacturing industry and it is “a strategic arrangement.” For China, the best countermeasure is to fight it back and urge the United States to come to its sense in “a trade war.”

Qu Xiaohua, board chairman of the Canadian Solar Company

The whole global photovoltaic industry is still in a development period and various links of its industrial chain need participations from various countries. Only if all countries develop it jointly by making full use of their advantages will it be realized to get on the grid at a reasonable price. Currently, it is a difficult time for the photovoltaic industry, and the United States' action of punishing China's photovoltaic enterprises will inevitably hurt both sides.

Chen Zhuo, legal supervisor of Yingli Group

Before the final judgment, Chinese photovoltaic enterprises mainly need to do two things. First, they need to persuade the ITC to exempt the retroactive tax, and second, they should change the tax rate of the anti-dumping tax. The possibility of exempting the emergency tax is large, but it is difficult and unoptimistic to change the anti-dumping tax in the final judgment.

Yu Wenjun, new energy industrial analyst of Shenyin Waiguo Company

The accumulated tax rate of the preliminary judgment of the anti-dumping and anti-subsidy is as high as 31 percent, which will make the cost of the Chinese manufacturers equal to that of the U.S. manufacturers and make the Chinese manufacturers lose their advantage. However, Chinese enterprises could respond by establishing battery tag factories in foreign countries or transferring the order forms to Taiwanese enterprises and manufacturing for them. In this way, the cost will increase by between 6 percent and 12 percent, but the tariff will be avoided.

Read the Chinese version at: 中国应正面迎击美国“双反”

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