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China to Probe U.S. Renewable Energy Policy

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China has hit back at the U.S. by announcing a probe into the country’s renewable energy policy. The announcement to probe U.S. renewable energy policy comes a few weeks after U.S. had decided to investigate sales of Chinese-made solar panel. Chinese solar panel manufacturers such as ReneSola Ltd. (NASDAQ: SOL), JA Solar Holdings Co. (NASDAQ: JASO) and LDK Solar Co. (NYSE: LDK) count U.S. as one of their major markets.

The announcement to probe U.S. renewable energy policy came from the China’s Commerce Ministry. The announcement came after China’s solar industry association, earlier this week, asked Beijing to launch an anti-dumping and subsidy probe into imports of U.S. polysilicon, which is the raw material used to make solar cells.


The investigations launched by U.S. and China highlight the rising trade tensions between the two countries. There is already increasing pressure on China to appreciate its currency against the U.S. dollar. Washington believes that China has kept the yuan artificially low to boost exports, which is hurting the U.S. economy.  Recently, President Barack Obama said that China is now grown up and should act that way in international affairs.

Meanwhile, China continues to defend its trade policy. Regarding the latest probe, a statement on China’s Commerce Ministry’s website said that the ministry has decided to initiate a trade barrier investigation into policy support and subsidies for the U.S. renewable energy sector. The ministry said that Chinese solar companies have argued that U.S. policies constitute a trade barrier against the export of Chinese renewable energy products to the U.S.

Chinese solar companies also claim that U.S. measures to support its solar industry violated the country’s commitments under Word Trade Organization rules and are unreasonable barrier and restriction on China’s renewable energy industry, reducing the competitiveness of Chinese products in the U.S. market.

 

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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