CHINA SOLAR EDGE UNSUSTAINABLE

Federal research lab concludes China's costs to produce and deliver solar to U.S. market exceed those of U.S. producers; Analysis dispels faulty assumption that Chinese manufacturers enjoy cost advantage
February 7, 2012 (Coalition for American Solar Manufacturing)

"The Coalition for American Solar Manufacturing (CASM), a group of seven U.S. solar manufacturers representing more than 150 employers of more than 14,650 workers, is heralding a revised research presentation from the National Renewable Energy Laboratory…[which[ concludes Chinese production of crystalline silicon solar technology for the U.S. market costs more than U.S. production for the domestic market, when the costs of shipping are included.

"CASM contends the findings validate its position that the Chinese solar-manufacturing industry enjoys no cost advantage in solar production costs but, rather, benefits from a government-underwritten export campaign to injure competition from U.S. manufacturers. At least 12 U.S. manufacturers have suffered layoffs, plant shutdowns or bankruptcies over the past two years. The coalition supports petitions that SolarWorld filed Oct. 19 to seek anti-subsidy and anti-dumping duties on Chinese imports."

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"…[The presentation] concludes that Chinese producers have an inherent cost advantage of no greater than 1 percent, compared with U.S. producers. However, when trans-ocean shipping costs are counted, Chinese producers face a 5 percent cost disadvantage…[and only Chinese] government subsidies…sponsor the Chinese industrial drive to export about 95 percent of domestic production, a campaign that has already seized 55 percent of global market share…

"On Dec. 2, the ITC issued a unanimous preliminary determination that Chinese trade practices are harming the U.S. domestic solar manufacturing industry. The next step in the trade case will be Commerce’s March 2 preliminary anti-subsidy determination. On March 27, Commerce is scheduled to make its preliminary anti-dumping determination on whether to impose duties to offset the effects of Chinese import pricing at artificially low prices…"