The World's #1 Renewable Energy Network for News, Information, and Companies.

U.S. Boosts Duties on China Wind Energy as Trade Talks Open

U.S. Boosts Duties on China Wind Energy as Trade Talks Open

Ratcheting up trade tensions with China, the U.S. increased import duties on wind turbine towers produced by Chengxi Shipyard Co. and CS Wind Corp. as economic talks between the two nations opened in Washington.

The Commerce Department yesterday set final punitive tariffs on the products from China and Vietnam. The rates were higher than preliminary tariffs announced earlier this year to counter government subsidies and to prevent the goods from being sold in the U.S. below production costs, a practice known as dumping.

“The final results are an important step in remedying the material injury already suffered by the U.S. industry and will force the Chinese and Vietnamese producers to compete fairly,” Alan Price, an attorney with Wiley Rein LLP in Washington, said in a statement. Price represents the U.S. manufacturers that brought the case against the foreign producers, including Broadwind Energy Inc. of Naperville, Illinois.

The decision coincided with the start of two days of trade and economic talks between U.S. and Chinese officials. Tensions between the world’s two largest economies have risen within the past year over government support for clean-energy products, including solar cells and wind towers.

The department set anti-dumping duties of 47.59 percent on wind-towers from Chengxi Shipyard and 44.99 percent for Titan Wind Energy Suzhou Co., both based in China. The rate for Titan Wind was more than double its preliminary rate of 20.85 percent, announced in July. The steel towers support the turbines and engines used by power companies.

Anti-Dumping

The Chinese unit of South Korea-based CS Wind, along with Guodian United Power Technology Baoding Co. and Sinovel Wind Group Co., both based in China, received anti-dumping rates of 46.38 percent, also higher than their preliminary levels. All other Chinese producers and exporters of the goods received anti-dumping rates of 70.63 percent. Actual rates will be about 11 percentage points lower due to accounting adjustments.

U.S. anti-subsidy duties for the Chinese goods will be 21.86 percent for CS Wind and 34.81 percent for Titan. Other producers and exporters received an anti-subsidy rate of 28.34 percent, up from the preliminary tariff announced May 30.

Sinovel jumped by 10 percent, the most since Jan. 13, 2011, its first day of trading in Shanghai, and closed 4.1 percent higher at 5.29 yuan. Titan rose 1 percent to 14.03 yuan in Shenzhen trading.

Lowered Rates

The Commerce Department also announced anti-dumping penalties of 51.50 percent for CS Wind’s Vietnamese unit, and 58.49 percent for other producers in that country. The rates are slightly lower than the preliminary tariffs set earlier this year.

Chinese and Vietnamese imports of wind-towers account for about 25 percent of the total U.S. market, according to an Aug. 3 report from Bloomberg New Energy Finance.

Joining Broadwind in the complaint were Fergus Falls, Minnesota-based Otter Tail Corp.’s DMI Industries, Katana Summit LLC, headquartered in Ephrata, Washington, and a unit of Dallas- based Trinity Industries Inc. Major producers of wind-energy gear include General Electric Co. of Fairfield, Connecticut, and Siemens AG of Munich.

The U.S. last year imported about $222 million worth of utility-scale wind towers from China, and $79 million from Vietnam, according to the Commerce Department. During the first five months of this year, the U.S. imported $269 million in towers from China, according to Bloomberg New Energy Finance.

Neither the Chinese Embassy in Washington nor attorneys representing the Chinese companies in the trade dispute responded to a request for comment.

Copyright 2012 Bloomberg

Lead image: Wind tower via Shutterstock

RELATED ARTICLES

Thumbs up

Even Solar Haters Are Loving SunEdison's Power Plant Strategy

Christopher Martin, Bloomberg

SunEdison Inc.’s focus on developing renewable energy plants worldwide, rather than the panels that make them work, has won over one of the industry’s top critics.

Scissors British Pounds

UK Plans to End Onshore Wind Subsidy Program a Year Early

Alex Morales, Bloomberg The U.K. proposed to cut subsidies to new onshore wind projects a year early, raising doubts that the new government is committed to cutting carbon emissions at the lowest cost.
Clock sky

German Utility's Race for Renewables Seen as Too Little, Too Late

Tino Andresen, Bloomberg

RWE AG, the German utility whose coal-fired plants make it Europe’s largest carbon emitter, officially started the company’s largest renewables project on Thursday: a wind farm in Liverpool Bay off Britain’s coast.

money pile

Deeper Capital Markets for Renewable Energy

Tomas Gardfors and Ann Vesely, Norton Rose Fulbright Following the global financial crisis, a more diversified funding market is developing in Europe. Institutional investors are helping to fill the funding gap left by the contraction in bank lending in the wake of the crisi...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 3
1505REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

FEATURED PARTNERS



EVENTS

Doing Business in South Africa – in partnership with GWEC, the Glob...

Wind Energy in South Africa has been expanding dramatically, growing fro...

SAP for Utilities

The SAP for Utilities conference is the most comprehensive SAP for Utili...

Bankability and Support Mechanisms for Renewable Energy Projects

Setting appropriate legal and regulatory frameworks is essential for the...

COMPANY BLOGS

The Almost There Markets: Just Give ‘Em Some Time

Earlier this year, we reported on recent legalization of third party fin...

Meteorological Technology International Magazine - SENSORS AND SENS...

Over the past 10 years, these sensing technologies have spread tre...

SunEdison Expands Residential Market Offerings with New PPA, Sales ...

SunEdison has largely focussed on the commercial and utility-scale solar...

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS