EU found Chinese manufacturers are subject to state interference

The report publicising the details of the anti dumping investigation carried out by the Indian ministry of commerce into solar cells imported from China, Taiwan, Malaysia and the U.S. gave an insight into the conclusions similar investigations have drawn about state interference by the Chinese government.

In dismissing attempts by ten Chinese solar manufacturers to be considered as companies operating in a market-driven environment free of state interference, ministry officials cited the findings of the EU anti subsidy investigation which culminated in last summer’s minimum price undertaking by Chinese exporters.

European manufacturers still railing at the EU’s decision against taking anti subsidy action on top of the negotiated trade deal will hardly be pacified by EU findings preferential tax rates and grants given by the Chinese government to its solar industry meant all Chinese producers were treated as operating in a non market economy (NME).

State interference

EU investigators pointed out the granting of special tax status to industries decided to be of ‘strategic importance’ was an example of state interference distorting the market and added a number of ‘violations’ had been discovered in the accounts of some of the Chinese producers handed over to its enquiry.

A similar enquiry by U.S. investigators concluded Chinese producers should all be accorded NME status, according to the Indian ministry of commerce’s 156-page report, which last week called for the imposition of a range of anti dumping duties on imported products.

The ministry’s report revealed Wuxi Suntech had not sought to rebut the presumption of its NME status and Baoding Tianwei – which infamously became the first Chinese company to default on a domestic bond payment earlier this year – had not supplied the information requested of it and was presumed to be of NME status.

Ministry officials said four companies in the JA Solar Holding Co group, two Canadian Solar entities, two CEEG companies and Canadian Solar supplier China Sunergy had all failed to rebut presumption of their NME status and subsequently withdrew their attempts to do so, complaining time constraints meant they would not be able to present the evidence required.

Indian investigators added, a claim by the JA Solar units that the emphasis was on investigators to prove their companies operated outside a market economy environment, was incorrect.