Just when it seemed tensions between Beijing and its trading partners in the US were dissipating, more accusations arise against each other for improperly supporting their own producers and obstructing foreign competitors. Today, China's government ruled that the US support to six of its solar and wind power projects violates free trade rules.
In the midst of various trade disputes with the US and Europe regarding market access and government subsidies for renewables, the Commerce Ministry announcement called on Washington to stop the support, which is believed to violate World Trade Organization rules. It was stated that the subsidies in Washington, Massachusetts, Ohio, new Jersey and California all serve as a barrier to imports.
"The Commerce Ministry will adopt relevant legal measures, demands that the United States cancel parts of the measures that violate World Trade Organization rules and give Chinese renewable energy firms fair treatment," the ministry said.
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Meanwhile, Washington has accused China for inappropriately subsidizing its own solar panel makers, which has resulted in an overflow of panels in the US market and devastated many American competitors. European manufacturers of solar cells have called on higher tariffs on imported Chinese equipment that they also say benefits from improper subsidies.
Tensions are high as both countries seek to promote their own suppliers in hopes of generating higher-paid technology and clean energy jobs.
Beijing is currently investigating complaints that imports from South Korea and the US of polysilicon, used to make solar cells, received banned subsidies.
“The Commerce Ministry will adopt relevant legal measures, demands that the United States cancel parts of the measures that violate World Trade Organization rules and give Chinese renewable energy firms fair treatment,” the Commerce Ministry said.