Chinese solar panel manufacturers in Southeast Asia were warned Thursday of introductory legislation that could strip them of benefits President Biden gave them last year.
Democrat Dan Kildee (MI-8) and Republican Bill Posey (FL-8) said today they will introduce legislation that would reverse the two-year moratorium on anti-dumping and countervailing duties on Chinese multinationals that Biden gave in June .
Last year, Biden intervened in the Commerce Department's investigation into the California solar company Auxin Solar. Trade is investigating whether Chinese companies have circumvented previously imposed tariffs by using production bases in Vietnam, Thailand, Malaysia and Cambodia.
On June 6, the White House issued an emergency statement saying that the war in Ukraine could affect the US power grid. And as the United States moves toward solar energy, any barriers to solar imports will be a problem. Biden unilaterally suspended new tariffs on Chinese solar energy produced in four Southeast Asian countries.
That didn't stop Commerce from investigating Auxin Solar's complaint. But if Commerce finds Chinese companies violating tariff rules, they won't be fined for 24 months thanks to Biden's emergency declaration.
Last month, Commerce released preliminary findings and sued four Chinese solar companies for evading tariffs imposed in China, according to Ausin's report.
Commerce said BYD Hong Kong, Trina Solar, Vina Solar (a subsidiary of LONGi) and Canadian Solar, which are Canadian in name only and manufactured entirely in Asia, dropped their existing tariffs. :
Shares of Canadian Solar were down more than 2.5% in afternoon trading.
A total of eight companies were investigated. The companies allegedly avoided U.S. tariffs by doing minor processing in Southeast Asia before exporting to the U.S., their main market, Commerce said.
The final decision of the chamber of commerce is expected on May 1. But if Biden is found guilty, Biden's statement would exempt them from customs sanctions.
It comes before the transfers of Representatives Kildee and Posey were announced Thursday.
"We cannot allow foreign solar manufacturers to violate trade laws, especially when they harm American workers and businesses," Kildee said in a statement today. "During its own investigation, the Biden administration discovered that China was evading tariffs on US solar energy imports, but suspended action on the matter, which is unacceptable," he said, adding that if the law passes, Biden would be disqualified for two years will become . in the office. refusal
Under the Congressional Review Act, Congress can overturn regulations made by the executive branch.
Reuters reported that the rejection of Biden's statements "would be a major blow to US solar project developers who argue that tariffs on Southeast Asian imports will increase their costs and stop the development of clean energy projects." ".
Solar importers have long complained about the costs associated with penalizing Chinese companies for purchasing products in the US. According to the National Renewable Energy Laboratory, commercial solar panels have declined.
Solar panel equipment is only about 25% of the cost of installing a solar panel system. Changes in the cost of solar panels alone have little effect on the cost of your solar installation.
US Representatives Bill Pascrell (D-NJ-9), Garrett Graves (R-LA-16), Terry Sewell (D-AL-07) and Bob Latta (R-OH-5) join Posey and Kildee in sponsoring the bill to introduce. . - the law.
Solar companies have invested heavily in the US in recent years thanks to the Section 201 solar tariffs imposed by Trump and continued by Biden. And the final back piece is provided by the Inflation Reduction Act, which was passed last year.
In November, First Solar of Ohio announced a $1.1 billion investment in a new solar facility in Alabama. And in January, Chinese multinational JA Solar announced it was investing $60 million in a solar panel factory in Arizona. The company was not among the 8 investigated by Handel.
If the law is passed, Congress will set the table to stop the president from making any other announcements they don't like. Since both parties agree, and the Inflation Relief Act is aimed at helping domestic solar manufacturers, the House and Senate are likely to repeal the emergency. And it would end a two-year grace period for Southeast Asian solar exporters if trade investigations do not go their way. Tariffs of perhaps 30 percent or more will be levied on these four companies.
In a press release today, Kildee said the Chinese solar panel maker has a proven history of violating US trade laws by using unfair trade practices, government subsidies and forced labor to undermine US solar manufacturers.
The US relies on foreign supply chains to meet at least 80% of its demand for solar power, mostly from Asia, led by China.
