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Don't Miss The Great Solar Debate: Where Does the Global Solar Industry Stand? Click Here to Register! ×

DOC Imposes Tariffs on Chinese Wind Towers

Steve Leone, Associate Editor, RenewableEnergyWorld.com
May 31, 2012  |  20 Comments

The United States Department of Commerce has once again ruled in favor of American companies who say Chinese manufacturers are receiving unfair government subsidies.

American wind tower manufacturers filed a trade complaint in December against Chinese companies, and on Wednesday the DOC made its preliminary determination on countervailing duties. According to Wiley Rein, the lead counsel for the group that filed the petition, commerce found that mandatory respondents, Titan Wind Energy and CS Wind China, received countervailing subsidies from the Chinese government at rates of 26 percent and 13.74 percent, respectively. The agency also ruled that the duty against imports of all other Chinese utility-scale wind towers is 19.87 percent.

The DOC is scheduled to make a separate preliminary determination on its anti-dumping investigation against wind towers from China and Vietnam on July 26. According to trade experts who weighed in after a similar set of investigations in the solar industry, anti-dumping tariffs are often set higher than countervailing duties. The petitions filed assert dumping margins of 64.37 percent for China and 59.11 percent for Vietnam. The case covers wind towers that are at least 50 meters tall and designed to support large-scale turbines with capacities greater than 100 kilowatts.

"This is an important step in remedying the harm caused by unfairly traded wind tower exports,” said Alan H. Price of Wiley Rein. “We look forward to further relief when antidumping duties are announced in about two months."

The Wind Tower Trade Coalition (WTTC) includes Trinity Towers, DMI, Broadwind and Katana Summit, said Dan Pickard of Wiley Rein shortly after the group filed the complaints.

The law firm is also representing the Coalition for American Solar Manufacturing (CASM), which filed a trade complaint against Chinese solar manufacturers in October. The DOC has ruled in favor of CASM on both the countervailing duties and the anti-dumping tariffs. The anti-dumping rates were set at 31 percent in what has become a fierce and hotly debated issue in both the American and the global solar industries. That ruling has drawn sharp rebukes from a large segment of the American solar industry, as well as the Chinese government, which is quickly ramping up its own investigations. The issue, though, has played well politically, with key Democrats backing the tough measures.

While China has risen to dominance in the global solar industry, its manufacturing presence is much smaller in wind. However, members of the WTTC say that they are being forced out of the industry because of the price of towers beings shipped to the United States.

The American wind market continues to put up strong installation numbers, but the industry is fighting to extend the Production Tax Credit, a key financial component that backers say is critical to the market’s continued growth. However, no deal has been reached, and many manufacturers have stated that they may turn away from the U.S. market without an extension.

20 Comments

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Anumakonda Jagadeesh
Anumakonda Jagadeesh
June 11, 2012
If the Chinese equipment is of good quality why this measure? Dr.A.Jagadeesh Nellore(AP),India Wind Energy Expert E-mail: anumakonda.jagadeesh@gmail.com
ANONYMOUS
June 4, 2012
a johnson; you are simply wrong, wrong, wrong on all counts.
A Johnson
A Johnson
June 4, 2012
Filing a complaint with our Commerce Department against the foreign mfgr is childish. Lets go beyond that. Who ever is importing these towers needs a U.S. Government import license.
The U.S. Gov't must tax that entity (the importer) the difference between American Made and Foreign made products to compensate the American Worker for loss of income, The Federal, and State Governments for loss of Income Tax Revenue derived from that worker and the Unemployment payments made to those workers put out of work due to foreign made products imported. In addition, Corporate Tax Revenue is also on the table since foreign made goods means less American Workers means less Social Security Revenue thereby affecting the entire Social Security System.
The 'duties' are applied on this side of the sale avoiding a 'FREE TRADE AGREEMENT' debate.
william hughes
william hughes
June 3, 2012
Hi Tom
I must have been having one of my zero clarity attempts to write something. What I was trying to say is that it is so important for us to get off fossil fuels that even destroying our own wind turbine or solar panel industry would not be too great a price to pay if that was what it took. Have a look at this link.
http://mtkass.blogspot.co.nz/2010/10/forget-climate-change.html
Tim Gulden
Tim Gulden
June 3, 2012
Let's level the playing field and have our manufactures receive these so called unfair government subsidies from our government. Oh...wait...that would let in more competition to the giant non-renewable energy sector. I guess we know who controls our government : (
tom clark
tom clark
June 2, 2012
To William Hughes at comment#13

And your point is??
ian page
ian page
June 2, 2012
A european perspective: I was part of the computer industry in europe in the 80's when governments tried to support the local computer firms ( ICL, Bull, Siemans) against the US companies using tariffs and quasi legal means. It cost a lost , made use of computing lower in europe because of the higher expense and complexity, and failed because the US had a bigger home market and was thus able to invest more in innovation.We put lawyers and politicians against innovation and volume and failed.

The US is entitled to try to defend its home market, but there are three factors to remember

1. The module cost is only about 20% of the installation - the rest is mainly US based ie jobs in transport installation finance etc. These are the jobs that will be decreased and are obviously more than the possible extra jobs in the highly automated US solar chip business.

2. China's modules will go somewhere- and the countries that get them ( including China) will get cheaper renewable energy than the US giving them competitive advantage. The largest market in solar ( and wind ) is likely to be the low cost Chinese home market not the fragmented US one.

3. History doesn't matter, market volume and cost does. Whether the Chinese skipped over buggy whip innovation and stole US ideas, or simply were smarter in how they industrialized is moot.

I'm not a sinophile- its just better to decide on a strategy once you know what the problem is, and not just react!

Re: The comment on China restricting critical elements to control the industry. The elements are not rare- its just expensive and messy to extract and purify them. The US has indigenous sources if they want to pay the financial and environmental costs.
william hughes
william hughes
June 1, 2012
To Ruffle
Wind power is coming in at about 8.3c per kWh and being sold at about 20C/kWh. Solar panels out of China are coming in at around $1US per nominal watt, the oft quoted price which was said to be needed to make solar electric competitive with fossil fuel generated electricity. Have a look at a recent TED talk with Amory Lovins of the Rockey Mountain Institute if you need a more authoritative figure to make it seem more real to you. One point he made was that more renewable energy by far was installed in the last while than fossil fuel energy. The change is already underway and the only thing that can stop it is a huge glut of Natural gas (which, horror of horrors, may be in the offing)
http://mtkass.blogspot.co.nz/2007/07/solar-electric-government-role.html
ANONYMOUS
June 1, 2012
Please remember that it was the USA that forced other trading nations into freetrade agreements because the balance was their way. Now they are busy finding excuses to reneg on the deal because the balance has swung the other way. All's fair in trade and warfare but don't expect us to like you for it.
Robert Hilbun
Robert Hilbun
June 1, 2012
I totally agree with Mr William Hughs, clean energy is the future that I believe most of us want to live in. Let the Chinese or any other country, corporation, person, ect., put their money and resourses up and bring it into the world. This paronoid protectionistic stance will fail in ways we can't even imagine. That's pretty much a guarantee. What's next after solar and wind towers, maybe plastic toys, lets tariff those too and what else, oh yeah, just about everything. How much energy, and money will be wasted before it all blows by? The lawers and bureaucrats are going to be making bank on this mess for a long time.
Phil Manke
Phil Manke
June 1, 2012
I also read part of the piece on solar and RE derivitives. Far out! So the money clowns admit it will be a significant contender??
........
I suppose that would also mean the airlines and petro companies are liable for damages in obscuring my solar sky clarity, because it interferes with my profit making on RE!!
tom clark
tom clark
June 1, 2012
What make commenter #1 think that wind or solar power can make any significant contribution to U.S. energy independence? and
Why would commenter #2 think that any country needs so called alternative energy - solar and wind power are not an alternative to anything except each other.
Don't be so gullible - Get educated and do some realistic research.
Phil Manke
Phil Manke
June 1, 2012
Yes, I agree the USA populace, in general, is asleep in it's corporate induced dementia, but one can hardly blame the Chinese for taking advantage of markets that US corporations and businesses did not want. Their wages may be generally lower than what most US workers would prefer, but it is the free hand of US corporate dominance that has taken your money away. There will continue to be more difficulties ahead as we adjust to a world of trade among nations while the corporations rally to maintain their values, however compromised they may become, at far too many costs because of lax government oversight and lust for their money. Many US companies experience sour grapes now because of dropping the ball on RE tech, or more correctly, selling the ball to the oil and coal interests, and they still are because they can control our senators and representative, governors and presidents in government with a $imple carrot on a $tick.. That is what happened to most 'good corporate community companies', if they ever did exist. The Chinese are just trying to stay viable. Are they not also worthy as we are, whatever the form of government?
Robert Hilbun
Robert Hilbun
June 1, 2012
If the US quit dumping all our money into bailing out bad banks and the military and rediculous NSA projects(Bluffdale ,Utah) we could beat the Chinese at their own game and subsidise the worlds clean energy ourselfs. But our bright bussiness folks are too busy seeing how we can set up derivitive trading on the weather.
Howard Johnson
Howard Johnson
June 1, 2012
And keep shopping at Wal-Mart,
where, years ago, all products in the store were American made.
Slave labor wages are alive and well in China.
What happened to good corporate community companies ?
ANONYMOUS
June 1, 2012
There is some truth in the claim that the Chinese jumped some technical development but what do you expect. They should invent buggy whips as they work their way up. The US borroed a few starting points from Europe If I rememnber the Benz actually came from Gerrmany not from Henry Ford. Don't forget the US wasted much of it's development effort on the biggest tail fins on cars and the most inefficient 7 litre engines to haul a single driver to work in the morning, just to pick on cars. The Chinese are now inventing many things and they do it well. There are still some Chines junk producers (just like most other countries)but they also produce high qualitry and reliable electronic equipment, put a man in space, exploded nuclear weapons and almost done away with the bicycle. TGhey also train more scientists and engineers than lawyers and accountants. So beware the future.

We have experiencd US fair play ourselves as your government bullies smaller countries into FTA and then excludes all sorts of US imports. I undxerstand that you don't hate us it's just business - like farcical "anti dumping duties" but don't expect us to like you for it.
Phil Manke
Phil Manke
June 1, 2012
3; It may be that your psycho fear babble is propelled by fear and latent guilt, hey? Your contention is that the Chinese deserve to be held down by what? Our superior tec savy and blind cunning leverage of US world market dominance, and that will somehow 'not' incur resentment in other countries as well as more latent fear at home for what we "think" we deserve at their expense.
.........The USA may have certainly become the most recent producer of "cheep rubish" and "consumer oriented, well timed destruction" garbage of "profit engineered purpose".
........Wake up and join the new world. US citizens are out of work because the banking establishments discovered they cannot push and decieve all the people all the time. The "fed" has no clothes after all. They were far tooo trusted, and still are, because "profit above purpose", and "form over content" is the USA rule of the day. It is almost old testament biblical.
ANONYMOUS
June 1, 2012
The Chinese do not massively subsidise their solar and wind manufacturers out of the milk of human kindness to give poor round eyes nice cheap solar and wind power.

They are doing it to destroy our manufacturers and take control of the industry and technology which we developed with blood, sweat and tears and paid for over a 200 year process of indsutrialisation from an agrarian society to the high tech world of today. Then they will industrially dominate us as the west did to the rest of the world in the 19th and 20th centuries.

Then we will see the price of solar and wind rocket if it is available at all (like rare earths) when they control the market and decide oh we forgot, our 1.2 billion Chinese need it first.

That difficult industrial innovation process they are sidestepping and they think that they are so clever by simply copying the end product of that 200 year process, created by men and women who dedicated their lives to the engineering quest for improvement and innovation - innovation extracted from Nature by wringing her secrets out of her. A difficult and painful process which the Chinese don't have to undergo, they can just copy 200 years of other people's work.

Yes buy cheap Chinese rubbish that breaks after three weeks, produced in a slave prison factory with anti suicide nets around the plant with 80 hour work weeks, no health and safety, no environmentla controls - yes what a surprise it's "cheep". Put westerners out of a job onto the scrap heap and soon there will be nobody left in a job in the west anymore to be able to buy all the stuff we sent to China that we used to make.
Mike Maybury
Mike Maybury
June 1, 2012
Every country, including the US, and the UK where I live, is needing alternative energy and energy conservation. So important is this that every source, particular cheaper products if of sufficient qualiity should be bought, erected and start producing energy, enabling the ghastly pollution caused by fossil fuels, whose generating stations should be closed as soon as possible.
william hughes
william hughes
June 1, 2012
Becoming energy independent is so important that the USA should let China finance this by dumping solar panels and wind turbines in the US. I wouldn't say this about any other industry but the positive spin offs of energy independence are so great that an exception should be made for any renewable energy equipment.

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Steve Leone

Steve Leone

Steve Leone has been a journalist for more than 15 years and has worked for news organizations in Rhode Island, Maine, New Hampshire, Virginia and California.
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