Monday, December 19, 2011

This Year's Top Energy Stories: #5) Solar Dumping

In early December, Solarworld headed a group of 7 solar manufacturers within the United States who have accused Chinese manufactures of pricing their products artificially low. This practice, known as predatory pricing and in the case of an import, ‘dumping’, is illegal within the United States. As such, Solarworld has called (and recently approved) a formal investigation into the Chinese solar industry business practices.
This development comes at the tail of what has been an ongoing economic dispute between the establishment of the United States and the rising star of China. Economic tensions between the two countries have risen with the U.S. accusing China of currency manipulation, and China accusing the U.S. of protectionism.
With respect to the solar dispute, there is a significant divide among American manufacturers. Although Solarworld, the largest solar manufacture, has headed the ‘anti-dumping’ coalition, there is a group of American companies, known as the Coalition for American Solar Manufacturing (CASM), that advocates for loose importing policies. CASM argues that these lower prices benefit the industry as a whole.
This topic is still unfolding and we await to hear the ITC’s subsequent decision on the ruling.

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