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Anti-dumping duties on Chinese solar products harm both sides

By Luo Lan (People's Daily Overseas Edition)

08:03, May 23, 2012

Edited and translated by People's Daily Online

The United States ignores China’s advantages of large-scale production, and arbitrarily raises dumping margins.

The U.S. Commerce Department issued a preliminary ruling on May 17 that solar products from China will be subject to anti-dumping duties of between 31 percent and 250 percent.

China has expressed its strong opposition to the ruling. Wang Guiqing, vice president of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), said that it is a distortion of the current situation of China’s solar industry and solar exports to the United States and will seriously damage the sustainable development of both countries’ green energy industries as well as the interests of their consumers.

Chinese companies not low-cost competitors

Question: Chinese solar products enjoy a price advantage over their U.S. counterparts. Why do they deem it as low-cost competition?

Answer: China’s crystalline silicon photovoltaic cells enjoy a price advantage thanks to the concentration of the solar industry chain in the country, Chinese solar companies’ more efficient management systems, larger production scales, and forward-looking business strategies. Chinese companies are not, and have no intention of becoming low-cost competitors.

Question: Why did the United States impose heavy anti-dumping duties on Chinese solar products?

Answer: The main reason for the heavy anti-dumping duties is that the United States refuses to recognize China’s market economy status, and ignores the fact that Chinese companies operate under market economy conditions. It has chosen an inappropriate “surrogate country” to conduct unfair comparisons and to deliberately raise the dumping margins of Chinese companies. This is not in line with the current situation of China’s market economy, and underscores America’s tendency toward protectionism.

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