China launches US renewable energy trade barrier investigation

25. November 2011 | Industry & Suppliers, Markets & Trends, Trade cases | By:  Becky Stuart

The U.S.-China trade investigation launched by SolarWorld is fast turning into a mudslinging match between the two countries. Now, it has been reported that China will be investigating U.S. renewable energy policy support and subsidies.

China US flags

The two countries are at trade war.

Reuters has reported that China’s Ministry of Commerce announced the decision in a statement on its website. "The Ministry of Commerce has decided to initiate a trade barrier investigation into policy support and subsidies for the U.S. renewable energy sector," quoted the news source. Wind, solar and hydro technology products will reportedly be included in the investigation.

The Ministry of Commerce went on to say that U.S. policies "constitute a trade barrier against the export of Chinese renewable energy products to the United States". Furthermore, it was said that U.S. measures "violated the United States' commitments under World Trade Organization rules, and are an unreasonable barrier and restriction on China's renewable energy industry, reducing the competitiveness of Chinese products in the U.S. market."

Reuters adds that the investigation is expected to cover programs from Washington, Massachusetts, Ohio, New Jersey and California.

Earlier in the week it was announced that China may launch an investigation into polysilicon dumping and subsidies into the country by the U.S.

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