US announces "Double counter" final result or China PV products

The U.S. Department of Commerce announced 16th local time, the results of the double counter end of the crystal silicon PV products in mainland China and Taiwan region: The Chinese mainland has been found to have dumped and subsidized crystalline silicon photovoltaic products, the United States will levy "double counter" tariffs, while the Chinese Taiwan to the United States crystal silicon photovoltaic products are dumped, Anti-dumping duties will be levied.

According to U.S. official statistics, 2013 China's mainland imports of crystalline silicon PV products total of 1.5 billion U.S. dollars, China's Taiwan imports of U.S.-related products total of 657 million U.S. dollars.

What has not been expected of domestic companies is that, compared with the "double counter" preliminary results of China PV, the end result shows that Chinese mainland products have increased subsidies in the US, which means that more stringent countervailing duties may be levied.

This August, China's Ministry of Commerce and the General Administration of Customs issued a joint announcement to stop the U.S. production of polysilicon in the form of "processing trade" to China's trade practices, starting from January next year to implement.

But some industry insiders point out that China's exports to the United States are much more than the number of polysilicon components imported from the United States. The result of this arbitration is to limit China's exports of crystalline silicon photovoltaic products to the US, so it is not a small blow to Chinese companies.

21st century Economic Report reporter learned that the results of the arbitration, next year around January 29, the United States International Trade Commission will be dumping and subsidies to the U.S. industry caused harm to the final decision whether to levy a heavy tax on Chinese enterprises.

Mainland products increase in US subsidy

The U.S. Department of Commerce released the same day to China and Taiwan's crystal silicon photovoltaic products of the final results show: Chinese manufacturers of dumping margin of 26.71% to 165.04%, subsidy range of 27.64% to 49.79%, Taiwan manufacturers dumping margin of 11.45% to 27.55%.

Compared with the preliminary results, the result of the final outcome of Taiwan's product dumping has been determined to decline, but the Chinese mainland product subsidies have increased. In June this year, the U.S. Department of Commerce first decided that the Chinese mainland product subsidy range of 18.56% to 35.21%, China's Taiwan manufacturers dumping margin of 27.59% to 44.18%.

According to the U.S. Trade relief procedures, the United States International Trade Commission will be next year around January 29 to make the final. Once the agency makes a positive final, the U.S. Customs will formally levy a "double counter" tariff; if the agency rejects Chinese-related products that cause substantial damage to US industries, the US will not impose "double counter" tariffs.

Previously, the United States has been to China's exports of the U.S. photovoltaic cells have been a round of "double counter." In November 2011, the United States launched a "double counter" survey of China-made photovoltaic cells, and in December 2012 decided to levy a 29.18%-254.66% anti-dumping and countervailing duties, the high tax rate makes it difficult for Chinese companies to export to the United States domestic photovoltaic products.

In response to a complaint from the German photovoltaic giant Solar world's US branch, the U.S. Department of Commerce launched a second "double reverse" survey of crystalline silicon photovoltaic products from China and Taiwan in January this year. Compared with the first double counter survey, the scope of the two "double Counter" survey was extended to PV modules, laminate, panels and so on, and the objects were expanded from mainland China to Taiwan.

After the first "double counter", China's photovoltaic companies generally purchase the Taiwan region's solar cell processing into components and then exported to the United States to circumvent tariffs. The second "double counter" to extend the object to the Taiwan region, blocking the mainland PV enterprises to seek the Taiwan enterprises and procurement channels.

China has also responded to America's "double counter". In July 2012, China's Ministry of Commerce conducted a "double counter" investigation into U.S.-made polysilicon, and in July 2013 decided to levy a 53%-57% tariff. However, since then, the United States produced polysilicon to "processing trade" in the form of selling to China to circumvent the "double counter" tariff. This August, the Ministry of Commerce and the General Administration of Customs issued a joint announcement to stop polysilicon "processing trade." The new rules start next January.

So at present, the United States and China's trade war, both sides hold the chips. However, some insiders worry that, in terms of volume, the number of Chinese sales to the United States, and China's imports from the United States, the amount of polysilicon is too different, volume is too unequal.

There is little room for us to export

The "double counter" result is a heavy blow to China's PV industry.

Industry insiders believe that the final results show that the Mainland China's PV products exported to the United States, the extent of subsidies has risen sharply, unexpectedly. The results came out two days, domestic and foreign listed PV stocks have different degrees of decline. Two times after the "double counter", China's PV manufacturing chain only silicon wafer products survived.

A group of data provided by industry senior analysts to the 21st century economic reporter showed that, in January-July, China's component manufacturers total shipments of 20GW (GW), of which about 3GW sent to the United States. In all enterprises, the number of shipments first is Trina Solar (NYSE:TSL), the second is solar (CSIQ), the third is the Crystal Division Energy (JKS), and the other is Yingli (YGE). The analysts said Chinese companies would find it hard to share the rapid growth of the U.S. installed market if they were to eventually rule in January next year to impose anti-dumping and countervailing duties on China's photovoltaic products.

According to U.S. official statistics, last year, China's mainland exports of crystalline silicon PV products total of 1.5 billion U.S. dollars, China's Taiwan imports of U.S.-related products total of 657 million U.S. dollars. The U.S. market has continued to grow faster, according to new PV installed data from the recently released U.S. third quarter. In the third quarter, the United States added PV installed 1.35GW, the year-on-year growth of 41%, the chain growth of 7.5%.

But the analyst said the U.S. market will remain a gaping hole in Chinese components next year. Data show that the United States next year, the local installed capacity of about 8GW, while the United States on the theoretical component capacity of 3.2GW, the top three is solar (500MW), Sun Power (500MW) and Solar World (380MW). But at present the whole industry overall start rate is very low, even under 50%. So next year the U.S. local component capacity is completely unable to meet the requirements of its installed capacity, in addition to the import of Japan and South Korea and other components, the Chinese components in the United States still have a market.

He believes that, coupled with the U.S. government on the local construction of photovoltaic power plants have 30% tax rebate preferential policy, the policy is valid until 2016. So even with Chinese components that add heavy taxes, building a power station is still profitable.

In response, Trina Solar insiders told the 21st century Economic reporter, the company is considering the product sales area, to do the global layout.

In addition, it is noteworthy that in the United States, with more than 70 solar energy industry member enterprises of the Parity Solar Energy Alliance does not support the United States to promote "double counter" measures. The agency said the imposition of a "double counter" tariff on China's imports of U.S. photovoltaic products would lead to a slowdown in the U.S. solar industry, raising prices for solar products and reducing U.S. jobs, and the US and Beijing should negotiate a deal to resolve trade frictions.