US Probe Identifies 4 Firms For Avoiding Trade Laws Against China

The U.S. Department of Commerce has identified Canadian Solar, BYD Hong Kong, Trina Solar and Vina Solar as firms possibly guilty of trying to evade US trade laws when it comes to import of Chinese origin solar cells and modules to the US. Announcing its  preliminary determinations in a recent circumvention case tied to solar cells and modules originating from China, it claimed to have found eniugh evidence against these firms.

US based Auxin Solar had initiated a complaint alleging that eight solar companies that manufacture solar cells and modules are manufacturing components in China and then sending those cells and modules to Cambodia, Malaysia, Thailand or Vietnam for minor processing before being exported to the U.S.Auxin Solar claimed that this amounted to evading existing antidumping duty (AD) and countervailing duty (CVD) orders on solar cells and modules from China.

At the same time, the other four firms in the list, namely New East Solar, Hanwha, Jinko Solar and Boviet Solar were all found to have not been circumventing AD/CVD orders, sparing them any further action from the department under US laws.

In it’s report, the department has noted that some firms  in Malaysia, Thailand and Vietnam did not respond to its request for information , something that is liable to make the department of commerce assume that they are circumventing the laws.

The investigation will not lea to any immediate ‘ban’ on imports through these firms. They will be permitted to certify that they are not circumventing the AD/CVD orders, in which case the circumvention findings will not apply.

The preliminary findings are supposed to be followed by in-person audits in the coming months to verify the information that was the basis of the initial findings.  A final determination of possible action and consequences for firms found in contravention of rules is scheduled for May 2023.

American Solar bodies, notable the American Clean Power Association and the SEIA (Solar Energy Installers Association) have been notably against the probe/s launched into Chinese imports, calling it a huge risk to clean power growth in the US, that will likely impact many jobs in the sector. US manufacturers, who have had a relatively low market share in their home country, have however been pushing for curbs and checks and more support.

The US is expected to add over 15 GW of solar capacity in 2022, with 5.6 GW coming from the home sector. Growth is expected to remain high for the coming years on the back of the Inflation Reduction Act which provides strong support for renewable energy.