Decision in US-China Solar Trade Probe Will Restructure Billions in Trade

The Commerce Department in US is expected to conclude this week that some Chinese producers are illegally avoiding taxes by building solar equipment in other Asian countries before shipping it to the US.

Solar Trade Probe Will Restructure Billions in Trade  (Photo: PVTECH)

In the recent published article by Bloomberg, the solar trade between US and China had faced problem, since the US Commerce Department was alerted that some Chinese manufacturers were illegally avoiding taxes because solar equipment was built in some other Asian countries such as Cambodia, Malaysia, Thailand and Vietnam.

Along with this case, the US Commerce Department is determined to track down those Chinese manufacturers who were illegally building solar equipment in other countries before delivering it to United States which resulted that the decision in US-China solar trade probe caused restructure billions in trade.

The conclusion of a 17-month investigation by the Commerce Department is anticipated this week, and it could have a significant impact on solar trade probe worth tens of billions of dollars.

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The judgement made by the US Commerce Department could expose some manufacturers who illegally avoiding taxes in the targeted countries to antidumping and countervailing charges of up to 254% commencing in June of next year.

According to Flipboard, the final avoidance verdict to some manufacturers, who were illegally avoiding taxes which is the effect of the decision in the US-China solar trade probe, would likely hasten effort by renewable developers to discontinue their supply chains from China. It is based from the reports of forced labor in the production of essential solar equipment and a US rule that has resulted in the detention of imports with ties to the industrial region of Xinjiang.

It might also help companies like First Solar Inc. and Qcells North America, which are growing their production capacity in the United States.

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