China's Commerce Ministry said Monday that it would impose a 6.5% tariff on materials from most U.S. polysilicon suppliers, beginning Friday. The ministry said in July that the tariffs, which it described as an antisubsidy measure, could reach as high as 57%.
The decision followed a U.S. move last year to impose tariffs on Chinese-made solar cells, after Washington determined that Chinese manufacturers received illegal subsidies and dumped their goods in the U.S.
Beijing's action also came after China and the European Union settled a dispute in July over the alleged dumping of Chinese-made solar panels in Europe. The EU backed away from threats to impose heavy tariffs, instead agreeing to set a minimum price for Chinese-made solar panels and capping the volume that could be sold in Europe. The dispute had threatened to set off a trade war as Beijing in retaliation began an investigation into European wine.
China has announced plans to ramp up its solar-electricity capacity over the next three years to support its flagging solar industry, which has been hit by a plunge in solar-panel prices amid global overcapacity. High tariffs on solar-grade polysilicon would have risked hurting Chinese solar manufacturers, which depend on imports of raw materials, by raising their costs. China's solar-panel makers account for half the world's solar-panel output.
China's Commerce Ministry had said that dumped polysilicon accounted for 36% of polysilicon imports to China in the first half of last year, though that was down from 44% in 2008. Meanwhile, the price of dumped polysilicon imports dropped 88%, and domestic prices for the material plunged 92%, the ministry said. China consumed 76,400 metric tons of polysilicon in the first half of last year, with 37% coming from domestic production, the ministry said.
Three U.S. suppliers were exempt from Monday's decision—U.S.-based MEMC Pasadena Inc. and two U.S. subsidiaries of Norway's Renewable Energy Corp. REC.OS +5.93% China said the companies received no more than minimal subsidies.
The U.S. Embassy in Beijing didn't respond to a request for comment.
