US 301 survey points to China's new energy subsidy

The Obama administration started the 301 survey for the first time, targeting China's new energy product subsidy policy.　　Can China win the trade war under WTO rules with a positive posture and ample evidence? -Udavi intern journalist Bu Jun | The smoke of the Trade protection war has spread to the new energy industry. October 15, the United States Government announced acceptance of the United Steelworkers Union's request to start investigating China's new energy products subsidy policy.　　The survey involved 154 companies in China's wind, solar, high-performance batteries and the new energy car industry. Chinese officials and industry responded quickly.　　The Deputy Director of the National Development and Reform Commission, Zhang Zhang, director of the National Energy Bureau, said in a media conference late October 17 that the US side's accusations against China were not established and that its investigation had decided only to win votes rather than fair trade, and was "Shanchu, Busher".　　On the afternoon of October 19, the Chinese electromechanical products import and export Chamber of Commerce, which represents the export interests of China's relevant industries, also held a media meeting to refute the US accusations and stressed that the US move would ultimately hurt US investors. Two days later, several Chinese and American renewable energy companies, including Sinovel, Yingli and GE, held a symposium on "section 301" in Beijing.　　As the moderator of the National Development and Reform Commission, Deputy director of energy Junfeng called for domestic renewable energy production enterprises need to "argue, can not be silent nor complain, for 90 days to enable the United States Government to withdraw the investigation." 301 on September 9 this year, the United Steelworkers union submitted a 5800-page application to the Office of the United States Trade Representative in accordance with Article No. 301 of the U.S. Trade Act 1974, saying that the Chinese government has given high subsidies to new energy companies to increase the price advantage of their products and affect U.S. employment.　　US demand for solar energy has increased by 41% in the past two years, with U.S. production only 7% per cent and four major U.S. producers losing 580 jobs in the case of a doubling of Chinese exports to the US. An overview document disclosed by the United Steelworkers union, China's measures are divided into five categories: reducing the availability of key raw materials, such as controlling rare-earth exports, and violating the World Trade Organisation's ban on subsidies based on export performance and "indigenization", such as research and development funds specifically targeting new energy exports　　Discriminatory measures against imported goods and foreign enterprises, such as the localization rate requirements for PV and wind power; technology transfer regulations, such as Evergreen Solar, a US photovoltaic company, were forced to transfer relevant technology to a joint venture when it was established in China, interfering with domestic subsidies for trade. The survey application was the first 301 applications received by the Obama administration. Section 301 is for foreign unfair practices affecting the trade in American products or services.　　In 2006, the United States launched 301 articles on the EU Hormonal Beef Act and then appealed to the WTO and was successful. East China University of Law and political science professor Zhu Ye said to the Economist, this 301 hasIt is not 301, there have been many changes, but we still get used to this term.　　In the 第1301-1310 section of the Comprehensive Trade and Competition Act 1988, "Super 301" and "Special 301 sections" were added to the general clause 301, respectively, for countries restricting the entry of United States products and services into their markets, and those that did not provide adequate and effective protection of intellectual property rights. In the view of some observers, the US move is actually a tactic before the November 2 midterm elections in Congress. The U.S. Steel Workers ' Union plays a pivotal role in American politics, and its votes can affect the success of the candidate, whose biggest concern is unemployment. For the past more than 60 years, the unemployment rate in the United States has been maintained for 14 months near a high level of 9.5% per cent.　　Clearly, if the Obama administration does not start the investigation, it will infuriate the American labor group, which is the main supporter of the Democratic Party. Of course, there are people in the United States who do not buy into the Obama administration's 301 investigation. New York State Democrat Senator Charles? Charles Schumer said publicly that the move was too weak, "the Obama administration is a palliative, not a cure, and the survey of subsidies for China's clean energy industry is outdated, and manipulating the exchange rate is a real issue." "On the same day that the 301 survey was announced, the US Treasury announced a delay in releasing the new exchange rate report. The U.S. House of Representatives has already passed the "Currency Reform Promotion Fair Trade Act", which punishes the undervaluation of the renminbi, which will not only affect China's new energy industry if it is passed by the Senate and signed into force by the President.　　Cao Honghui, director of the financial markets room at the Chinese Academy of Social Sciences, said the US Treasury had postponed a report aimed at reducing the likelihood of the Senate passing the bill, thus avoiding a loss of overall economic and trade confrontation with China prematurely. Jinni, Deputy Secretary-General of the China World Trade Organization Research Institute, told our correspondent that the actual background of the 301 survey in the United States was that everyone had a hard time after the economic crisis, and that the most important thing was that the United States, in the process of industrialization, mistakenly believed that trade liberalization meant unemployment. "Now look at us and feel better," he said.　　However, he pointed out that any industry in international trade in the view that they have been unfairly treated, can be expressed, the United States Government to verify such complaints is in line with the legal process, but also the embodiment of American-style democracy.　　The main accusation of the US steelworkers union is that China subsidizes the new energy sector in terms of export performance and "localization", and many Chinese new energy practitioners say they are not. China's new energy export support policy is still under study and has not been launched, Yiu Wenping, vice president of China's electromechanical products import and export Chamber of Commerce, said at a press conference on October 19. And China's support is not a direct supplement to the US cash subsidy.　　She also said the Chinese industry has the confidence to win the survey with ample evidence and a lot of objective facts.Sun Guangbin, a director of the chamber's machinery industry, said the Steelworkers ' association said the Chinese stimulus package was twice times more likely to subsidize new energy than the US, saying it did not understand the industry. In fact, the U.S. government from subsidy policy to the amount of subsidies, the world's top, the movement is much faster.　　Since 2009, the United States has subsidized new energy, energy efficiency and smart grids, with subsidies amounting to more than $25 billion trillion. On accusations that China's subsidy policy is reducing the competitiveness of U.S. products in the international market, Sun Guangbin points out that 80% of China's exports are processed by feed, earning only a small amount of processing fees, technology, raw materials and markets in the United States, and Chinese products are hard to influence prices in the US market.　　The price of exports this year is higher than last year, precisely because the price of polysilicon imports from the United States has increased by 30%. Currently in China, there are two ways to apply for government subsidy for solar photovoltaic projects, namely, the solar roof plan and the Gold Sun Program of the Ministry of Finance, but because of the wide range of approvals, there are few projects that actually subsidize the two schemes.　　Compared with this kind of temporary subsidy measure, the industry looks forward to the regulation and policy of the electricity price on the internet, and carries on the constant and stable subsidy to the PV grid electricity price.　　Wang Lihu, general manager of Asia Silicon Industry, told our correspondent that the solar roof plan and the Golden Sun program did not limit whose products, and the total amount was small, much less than in developed countries.　　Wuxi Suntech Beijing Branch Customer representative Guofan said that China's manufacturing industry has a general price advantage, this advantage comes from the advantages of human resources, raw material costs, economies of scale, prices are entirely in accordance with market-oriented operation produced.　　Junfeng told our correspondent that the WTO rules do not provide subsidies for export performance, but China's preferential policies for exports only return a 17% value-added tax, which is universal in the world, only because the United States does not have value-added tax, there is no problem.　　In Wang Lihu's view, China's many preferential policies for the new energy industry remain in the mouth, and there is no substantive action, this time the Americans as a pretext. Jiang Kejun, a researcher at the National Development and Reform Commission's Energy Institute, also told the Economist that China's subsidies for wind and solar power are not actually in the production process. "To foreign enterprises, the former is too preferential, give them supranational treatment, now give them national treatment, it is a bit unaccustomed." The two sides should first communicate and see how to explain. "After receiving a complaint from the Steelworkers union, U.S. trade Representative Ron?" In a statement, Kirk (Ron Kirk) said it would take 90 days to verify the complaints under the legal framework, and that those charged with sufficient evidence to support the WTO dispute settlement mechanism "will actively pursue our rights and be enforced through WTO litigation." "Within 90 days, the Chinese government can also consult on this." If the negotiations fail to reach a mutually acceptable solution, the United States says it will submit the dispute to the WTO, according to the dispute settlement rules and processOrder of understanding, set up an expert group to arbitrate this.　　Normally, the group of experts handles and appeals to both parties for more than one year. East China University of political science professor Zhu Ye said that the investigation process, the investigation party can complain, have the opportunity to send their own voice, "not to be sued will win, should not be sued will lose." "At a symposium on the 301 section of the Renewable energy industry in Beijing, Solar expressed another concern about the 301 survey, which could trigger a linkage effect on Chinese companies, such as the European Union.　　Our correspondent also learned that, taking into account the allegations in the 301 survey, China's first large-scale wind power unit will be invited for bidding on October 26, and its bid has cancelled the terms for the companies that have been awarded the winning bid. In Junfeng's view, business is to find the other side of the soft rib, to get some opportunities. Positive action is the best chance to prove your innocence. "The WTO is a place of reasoning, and it is a good thing that the United States has no direct anti-dumping, and this time we have ample opportunity to speak." Find evidence that I have no subsidy, or that my subsidy is justified by helping the industry together without harming American companies. Many times, we don't have the habit of reasoning. "This newspaper reporter Chen Zhu also contributed to this article