China's government has ruled that U.S. government support to sixAmerican solar and wind power projects violates free trade rules, adding tostrains between Beijing and its trading partners over renewable energy.
The United States and China are the two biggest markets for renewable energyand have pledged to cooperate in developing technology. They accuse each otherof improperly supporting their own producers and obstructing foreigncompetitors.
The Commerce Ministry announcement Monday made no mention of possible penaltiesbut called on Washington to stop the support that it said violates World TradeOrganization rules.
Beijing is in the midst of a series of trade disputes with the United Statesand Europe over market access and government subsidies for solar, wind andother renewable energy industries.
Monday's announcement said U.S. government subsidies to wind, solar and hydroprojects in Washington state, Massachusetts, Ohio, New Jersey and Californiaacted as a barrier to imports but gave no details. It called on the U.S.government to give Chinese renewable energy products "fairtreatment."
The Chinese probe was launched last November two weeks after Washington said itwould investigate whether Beijing is inappropriately subsidizing its own makersof solar panels, allowing them to flood the U.S. market with low-pricedproducts and hurt American competitors. The Commerce Ministry said it wasacting on complaints by trade groups for Chinese producers of clean energytechnology that said they were hurt by the U.S. policies.
Trade tensions over renewable energy are especially sensitive at a time whenthe United States and other Western economies want to boost technology exportsto revive economic growth and cut high unemployment. Both China and the U.S.are promoting their own suppliers in hopes of generating higher-paid technologyjobs.
In July, European manufacturers of solar cells asked the European Union toraise tariffs on imports of Chinese equipment that they say benefits fromimproper subsidies.
Beijing is investigating complaints that imports of polysilicon — the rawmaterial for solar cells — from the United States and South Korea receivebanned subsidies.