Trade war looming as China rebukes US support for solar
By Bloomberg News
China’s allegation that renewable- energy subsidies in five US states violate
free-trade rules ratchets up a potentially costly trade war between the world’s
two largest economies.
“It’s a long, slow escalation of trade and currency wars as we race to the
bottom,” said Theodore O’Neill, an analyst with Wunderlich Securities Inc. of
Programs supporting renewable power, including wind and solar, in Washington
state, New Jersey, Massachusetts, Ohio and California, violate World Trade
Organization policies and trade treaties, according to a preliminary finding of
an investigation posted yesterday on the website of China’s Ministry of
Commerce. China filed a complaint today at the WTO over US procedures for
calculating anti-subsidy duties on imports.
Those announcements followed a preliminary decision by the US Commerce
Department last week to impose tariffs of as much as 250 percent on imports of
Chinese solar cells. The agency said the units were being sold for less than the
cost of production in an attempt to drive out domestic competition.
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