Original title: U.S. companies’ sanctions against Chinese photovoltaic companies have been rejected
Affected by this news, after the US stock market on Wednesday, the stock price of First Solar, the largest US solar manufacturer, fell 3%; Chinese solar panel company JinkoSolar rose more than 2%; Canadian Solar rose 3.9%.
The A-share market opened on Thursday, and the photovoltaic concept has continued to grow stronger. As of the lunch break, Zhonglai’s daily limit; Bauing shares and Zhongli Group rose more than 10%; Oriental Yuhong and Sinosteel International rose more than 7%; Oriental Risen, Tus Design, Xiuqiang shares, Ruihe shares followed the rise .
Bloomberg report screenshot
In August of this year, US solar manufacturers submitted an investigation application to the US Department of Commerce, claiming that some Chinese companies set up factories in other parts of Asia to complete the production of solar panels in order to circumvent the US tariffs imposed on China. U.S. companies require that they initiate anti-circumvention investigations against crystalline silicon photovoltaic cells and modules that are assembled in Vietnam, Thailand, and Malaysia and exported to the U.S. with upstream components such as silicon wafers produced in China and produced by specific manufacturers.
According to regulations, the US Department of Commerce has 45 days to initiate an investigation. The preliminary ruling will be issued within 180 days, and the final ruling will be issued approximately one year later.
On November 11, local time, the US media Bloomberg reported that the US Department of Commerce has determined that Asian companies have not sold solar cells at prices “below normal value” and refused to investigate Asian solar manufacturers.
The report pointed out that if the investigation is initiated, it may cause the United States to impose tariffs on photovoltaic products from these Southeast Asian countries. In the first half of this year, photovoltaic products from these countries accounted for more than 80% of the total US photovoltaic product imports. The higher cost may affect the climate goal of US President Biden, which is to achieve a complete greening of the US power grid by 2035.
Reuters believes that this ruling is a victory for Asian solar manufacturers and the US trade organization that relies on their equipment, but it is a setback for US solar panel manufacturers.
The American Clean Power Association, an industry organization, said in a statement: “If this investigation is initiated, it will have long-term devastating consequences for our country’s energy goals and the current 230,000 Americans in the solar industry.”
The manufacture of solar panels is a multi-step process, usually completed in different factories in different regions or even countries.
The United States has a long history of setting trade barriers on photovoltaic products. In 2011, the United States first launched anti-dumping and countervailing anti-dumping investigations on solar cells and modules originating in China, and then required Chinese photovoltaic manufacturers to pay a tax rate of 18.32%-249.96% for solar cells and modules exported to the United States. Dumping duties, and 14.78%-15.97% subsidy taxes.
Screenshot of Caitong Securities’ March 2021 research report
Although the U.S. has since continued to increase tariffs on imported photovoltaic products in an attempt to suppress overseas photovoltaic manufacturers and “escort” the development of its local photovoltaic industry, as the globalization of Chinese photovoltaic enterprises’ business has deepened, the impact of U.S. administrative measures has been Was greatly weakened.
According to the “2020-2021 Overseas Photovoltaic Market Development Report” issued by the China Photovoltaic Industry Association, in 2020, even under the influence of the new crown pneumonia epidemic, the overseas production capacity of Chinese photovoltaic companies has achieved growth. At present, the overseas production capacity of Chinese photovoltaic companies are mainly concentrated in Southeast Asian countries such as Malaysia, Thailand, and Vietnam. With the advantages of low labor costs, tax-free or low tax rates in these countries, they have become the first-line domestic photovoltaic manufacturers to invest in and build factories. Preferably.
Data show that from 2010 to 2020, China’s share of global polysilicon production has risen from 26% to 82%, while the US’s share has dropped from 35% to 5%. From the perspective of the United States itself, the majority of polysilicon located in the upstream of the industry is controlled by Chinese companies. This status quo has led the United States to believe that its solar energy supply chain is very fragile.
However, the US Photovoltaic Industry Association has publicly stated that high tariff policies cannot promote the upgrading of domestic photovoltaic manufacturers in the United States to adapt to global market competition. Excessive and inappropriate protection measures will cause negative effects instead.