Scene from inside a China solar manufacturer. China is the world’s No. 1 producer and exporter of … [+]
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China solar panel makers in Southeast Asia were put back on notice on Thursday, with introductory legislation that could remove them from a special privilege President Biden gave them last year.
Democrat Dan Kildee (MI-8) and Republican Bill Posey (FL-8) said today they would introduce legislation that would repeal a two-year moratorium on anti-dumping and countervailing duties against Chinese multinationals, granted by Biden in June.
Taken from a White House statement published on line on June 6, 2022 about the temporary stay on … [+]
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Biden intervened in a Commerce Department investigation brought on by California solar company Auxin Solar last year. Commerce was looking into whether Chinese firms were circumventing previously imposed duties by using manufacturing bases in Vietnam, Thailand, Malaysia and Cambodia.
On June 6, the White House issued an emergency declaration stating that the war in Ukraine could impact American electricity supply chains. And because the U.S. was moving to solar, any impediments on solar imports would be problematic. Biden unilaterally put a hold on any new tariffs on Chinese solar made in those four Southeast Asian nations.
That did not stop Commerce from investigating Auxin Solar’s complaint. But if Commerce found Chinese companies were breaking tariff rules, they would not be punished within that 24-month window thanks to the Biden emergency declaration.
Last month, Commerce issued its preliminary findings and cited four Chinese solar companies for circumventing duties imposed on China, as Auxin’s claim suggested they were doing.
Commerce said that BYD Hong Kong, Trina Solar, Vina Solar (a subsidiary of LONGi) and Canadian Solar, which is Canadian in name only and is entirely manufactured in Asia, were circumventing existing tariffs.
Canadian Solar shares fell over 2.5% in the late afternoon hours on the news.
Eight companies were being investigated overall. Companies were allegedly bypassing U.S. duties by doing minor processing in Southeast Asia before exporting to the U.S., their prime market, Commerce said.
A final determination by Commerce is expected May 1. But if found guilty, the Biden declaration would free them of the tariff penalty.
That’s before Thursday’s move by Reps. Kildee and Posey was announced.
Rep. Dan Kildee. Under the Congressional Review Act, Kildee joins colleagues …….