Democrats in Congress are urging the Biden administration to investigate alleged unfair trade practices by Chinese-owned companies in the solar industry.
The Alliance consists of companies like Convalt Energy, First Solar, Hanwha-Q Cells, Meyer Burger, Mission Solar, REC Silicon, and Swift Solar, representing the domestic solar manufacturing industry and supporting around 34,000 workers.
According to the letter, Chinese-owned companies in Cambodia, Malaysia, Thailand, and Vietnam have been engaging in market-distorting practices, including illegal subsidies, that reportedly harm the U.S. solar industry, which is the focus of the petition.
Sen. Brown’s letter raises concerns about China’s attempts to bypass U.S. trade laws by subsidizing manufacturing facilities in countries participating in Beijing’s Belt and Road Initiative, thus evading targeted trade enforcement. Cambodia, Malaysia, Thailand, and Vietnam accounted for 84 percent of solar panel imports in the fourth quarter of 2023.
“China has subsidized the construction of manufacturing facilities in other countries, especially those within their Belt and Road Initiative, such as Cambodia, Malaysia, Thailand, and Vietnam,” Sen. Brown wrote, adding that “These are Chinese-owned factories, operated by Chinese companies, producing solar panels and cells with Chinese materials all with the goal of circumventing U.S. trade law.”
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The letter emphasizes the senator’s belief in the strategic importance of the solar industry, noting that China’s dominance could present significant energy security risks and hinder domestic job growth. According to Sen. Brown, China’s solar industry, closely connected to the Chinese Communist Party (CCP), produces over 90 percent of solar-grade polysilicon and controls more than 99 percent of global production capacity for wafers.
“China’s control of the solar supply chain poses significant energy security risks, as well as inhibiting domestic job growth and damaging American manufacturing potential,” Sen. Brown stated. “The U.S. solar industry cannot thrive if Chinese companies operate as a single-nation solar cartel.”
The senator called for a thorough examination of solar imports, cautioning that a failure to address the issue comprehensively could result in Chinese-headquartered producers moving production to other countries.
In conclusion, the Senate Banking Committee chairman expressed support for the Alliance’s AD/CVD petitions to give the U.S. solar industry an opportunity to succeed.
Fears that Chinese-manufactured electric vehicles (EVs) could decimate the American auto sector led Sen. Brown to urge President Joe Biden earlier this year to ban all EVs produced in China.
The letter is also co-signed by Rep. Marcy Kaptur (D-Ohio).
“I urge you to take decisive action and permanently prohibit EVs manufactured by Chinese companies or any subsidiaries they establish to hide their origins,” he wrote.
The Ohio senator warned that the CCP’s tactics render tariffs insufficient to prevent the flooding of the U.S. market by Chinese vehicles.
Currently, the U.S. imposes a 27.5 percent tariff on Chinese EVs, which includes a 2.5 percent import tariff and an additional 25 percent tariff imposed during the Trump administration and renewed during the Biden administration.
The Epoch Times has contacted the Department of Commerce and the International Trade Commission for their input on the matter.
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The new marketing campaign implemented by the company was highly successful.
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