(Reuters) - A bipartisan group of U.S. lawmakers on Wednesday introduced a bill that would block Chinese solar panel makers from claiming subsidies for their American factories. WHY IT MATTERS
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Picture taken October 14, 2016. REUTERS/Mike Blake/File Photo (Reuters) - A bipartisan group of U.S. lawmakers on Wednesday introduced a bill that would block Chinese solar panel makers from claiming subsidies for their American factories.
Link Copied! Workers work at the Trina Solar project site in Huai 'an, Jiangsu province in China on February 14, 2023. After a more than year-long investigation, federal officials have concluded that five Chinese solar panel companies have been skirting US tariff laws by routing their operations through four other Southeast Asian countries.
However, another big solar company, First Solar, which manufactures a type of solar panel unaffected by the tariff dispute, said it was supportive of the investigation. “What we are interested in is ensuring that there is a level playing field for domestic manufacturers,” said Reuven Proenca, a spokesman for First Solar.
Retroactive taxes on solar panels from China are likely to dramatically increase costs for U.S. solar installers. If the government decides to impose these taxes on the country's primary sources of solar panels, the resulting stress on the supply chain could put a damper on the solar industry's expansion.
The Commerce Department initiated its investigation on March 25 after Auxin Solar, a small solar panel manufacturer based in California, filed a petition requesting an inquiry into whether China was circumventing rules intended to prevent state-subsidized solar parts from flooding the U.S. market.
The tariffs, which will apply to certain solar products made by Chinese companies in Southeast Asia, kicked in at a moment of growing global concern about a surge of cheap Chinese solar products that are undercutting U.S. and European manufacturers.
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