China Economic Review
Charting China’s changing economic terrain · Since 1990

China to investigate US renewable energy subsidies

November 28, 2011

China launched an investigation of US government policy and subsidies for renewable energy, only weeks after the US announced a similar probe into China’s support for its solar industry, Reuters reported. China’s Ministry of Commerce (MofCom) probe follows a statement last week by China’s solar industry association that it might ask for an investigation into dumping and subsidies by US makers of polysilicon, a raw material used in solar cells. “The Ministry of Commerce has decided to initiate a trade barrier investigation into policy support and subsidies for the U.S. renewable energy sector,” according to a written statement on the MofCom website. Companies had claimed that US subsidies constitute a trade barrier and “violated the United States’ commitments under World Trade Organization rules…reducing the competitiveness of Chinese products in the U.S. market,” MofCom said.