US solar manufacturers file petition for antidumping investigation against Chinese-headquartered companies

The American Alliance for Solar Manufacturing Trade Committee has reportedly appealed for antidumping investigation and countervailing duties against China-manufactured solar cells and panels with the US International Trade Commission (USITC) and the US Department of Commerce.

The American Alliance for Solar Manufacturing Trade Committee is made of leading US solar manufacturers like Convalt Energy, First Solar, Meyer Burger, Mission Solar, Qcells, REC Silicon, and Swift Solar.

Tim Brightbill, co-chair of Wiley’s International Trade Practice and lead counsel to the petitioner the American Alliance for Solar Manufacturing Trade Committee, said: “America’s solar manufacturing industry is on the cusp of tremendous growth that will create jobs and change the trajectory of our clean energy transition for decades to come. However, this manufacturing renaissance is being threatened by China’s industrial policy, which has led to massive subsidization in China and Southeast Asia. This is resulting in high volumes of dumping on global markets including the U.S., injuring our domestic producers.”

He added, “We are seeking to enforce the rules, remedy the injury to our domestic solar industry, and signal that the U.S. will not be a dumping ground for foreign solar products.” 

A year ago, the US Department of Commerce found that Chinese solar manufacturers were avoiding tariffs on solar cells and solar panels by shipping their products through Cambodia, Malaysia, Thailand, and Vietnam.

The alleged dumping of solar products has led to an accumulation of huge stock, resulting in sales at prices below the cost of production.  According to the International Energy Agency (IEA), dumping of solar panels over a year and a half exceeded installations in 2023 by more than 25 gigawatts and led to a price fall of more than 50 per cent.

US Treasury Secretary Janet Yellen remarked: “China’s overcapacity distorts global prices and production patterns and hurts American firms and workers.”

The Department of Commerce will determine whether to initiate the investigations within 20 days of petition filing. The entire investigation process will take approximately one year, with final determinations of dumping, subsidisation, and injury. Thereafter, the collection of preliminary countervailing and antidumping duties will begin.

Currently, Chinese-owned companies account for more than 80 per cent of the global market share in solar products. The solar industry is one of key sectors that is spearheading the demand growth for aluminium. Over 85% of the mineral material demand for various solar PV components, ranging from frames to panels, is met by aluminium.

In early May, the US Department of Commerce also released a preliminary list of aluminium extrusion producers and exporters who sold their products at less than legitimate value in the United States. Those producers and exporters are primarily from China, Colombia, Ecuador, India, Indonesia, Italy, Korea, Malaysia, Mexico, Taiwan, Thailand, Turkey, United Arab Emirates, and Vietnam. The Commerce Department found China dumps 4.91–376.85 per cent of extrusion in the United States.