BUSINESS I TRADE
free trade agreement in clean tech that ensures open market access and a level playing field for everyone. All solar industry leaders want to see a trade war averted. It’s past time to move forward and put our industry first.”
Numerous industry analysts have pointed to the huge increase in silicon and solar cell production capacity, which has outpaced growing demand, as responsible for the rapid drop in global solar cell and module prices. Solar manufacturers around the world, not just in the United States, are confronted with extremely competitive cell and module price pressures in the current oversupply environment.
Punishing trade
Despite CASE’s and other protests the Government decided to increase punitive import tariffs on the Chinese solar market of 30 percent or more after ruling China had dumped cut-price solar panels into the U.S. market. The main concern from other solar companies is that the move will drive costs upward. CASE is now pushing for the government to reduce the tariffs before they are finalised stating the outcome is actually a blow to many US companies within the solar value chain. This view seems to be supported by most of the US and global associations despite claims that the government is responding to the US solar industry.
Unsurprisingly Chinese based companies rejected the ruling and outcome. Brinser has been unrepentant in his pursuit of what he calls an imbalance in global trade opportunities and recently recommended the government revise the US trade response claiming that China is amassing a new magnitude of economic might and its central planners increasingly target pivotal U.S. industries. Brisner states he believes China is responsible for problems facing the US manufacturing industry.
More specifically, Brinser recommended that the government: Use its new Interagency Trade Enforcement Unit to closely monitor import data for early signs of market distortions spurred by foreign governments.
Look hard at ways to preserve an open, transparent process for trade cases but in fewer steps and less time.
Aggressively find ways to anticipate and halt circumvention of trade remedies and theft of intellectual property.
Bring legitimate cases for industries that are too small or injured to afford them.
Shed light on foreign companies that raise capital on U.S. exchanges and then withhold audit information from securities regulators.
A global view This view is certainly not universally shared with some 36
www.solar-international.net I Issue V 2012
commentators suggesting Brinser has a fairly narrow view of the global market and the issues he feels the USA is facing are no more than the reality for the entire global solar industry. The truth is there is more supply than demand in the global market place creating a situation where all companies are ensuring there product is economically and technically attractive to consumers.
Many industry commentators are now suggesting that the on going trade concerns between China and the USA will in fact lead to larger problems and delay progress in the introduction of renewable energy. Despite Brinser’s claims of USA disadvantage a new report has revealed that the US has actually closed in on China in the race to be the lead investor in renewable energy, with a 57% leap in its outlays to $51 billion. Some of this investment is in the form of subsidies or tax trades and it will be interesting to see if China decides to pursue more USA activities using the same argument that Brinser is determined to see the US government follow. One of the dominant features of the renewable energy report was the finding that PV module prices fell by close to 50%. This global fact is enough to see the changing company dynamics that Brinser is trying to pin on Chinese policy. Another key factor has been the changing attitude from governments in terms of support due to austerity requirements brought on by a stressed economy.
Despite the on going trade battles the clash between the USA and China has served to help other areas receive unexpected interest in their own markets and offerings. Solar companies in Taiwan are one example of increased business, especially from the USA, as they are not affected by the trade dispute. While the USA and China continue their war of attrition many other areas are getting on with the process and benefitting from the distraction. Europe remains the key market at the moment and many companies are seeing a potential opening into the future markets of China and the USA.
Germany and Italy have seen massive booms in rooftop instalments as a direct result of the falling solar
prices.There has also been an increase in CSP projects in Spain despite rumours of the technology’s demise. Italy, Germany and Japan all saw greater investments in small scale projects than the USA and China and smaller countries, like the UK and Australia, also saw significant investments that lower prices have inspired.
It often seems that the focus on China and the USA allows countries like India to slightly ride under the radar of scrutiny and the region actually had the fastest rate of expansion of renewable investment than anywhere else in the world. The USA and China would do well to remember they are part of a global market and the increasing focus on local concerns and issues is likely to see the competition creep up on the outside lane in the race to develop long term sustainable PV companies.
© 2012 Angel Business Communications. Permission required.
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