Us – China Renewable Energy Dispute

Topics: International trade, World Trade Organization, General Agreement on Tariffs and Trade Pages: 3 (933 words) Published: June 1, 2013
US – China Renewable Energy Dispute


In 2010 US complained that China was subsidizing their renewable energy industry for creating a trade dispute problem for the global economy. US decided to take the case with the WTO who ruled in favor of US, claiming that the Chinese government is implementing illegal dumping practices. The World Trade Organization decided to allow US to take action against the Chinese government. They decided to impose tariffs for solar panels imported from China. The Asian Republic didn´t like the WTO´s decision and decided to appeal the case arguing that US´s government approved a green energy programs development. China considered these approach as violation of a commercial agreement between them.

China´s point of view

China claims that the United States protective measures for the renewable energy programs in some states (as Massachusetts, Ohio, New Jersey) would be a barrier for the Chinese exports. They believe that the US´s green energy programs are intended to protect their domestic industry instead of becoming auto sustainable as they claimed when the programs were approved. Chinese economy is growing at a fast pace, and they use this as an explanation to subsidize the renewable energy industry to be able to keep up with the economy.

At the moment China decided to appeal to the WTO decision that favored US. China´s Minister of Commerce argues that the Americans have broken the Subsidies and Countervailing Measures Agreement and the General Agreement on Tariffs and Trade.

US´s point of view

The US argument is that the Chinese government is subsidizing their local renewal energy industry and exporting their final products all over the world at duping prices, making it impossible for other countries to compete against Chinese companies. These explain USA decision of implementing tariffs on Chinese products for this type of industry (with WTO´s approval).

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