US lawmakers urge investigation into Chinese solar companies evading tariffs

On Tuesday, June 4th, federal legislators from both parties in the United States issued similar public letters to the Department of Commerce and the U.S. International Trade Commission (ITC), urging the Biden administration to investigate allegations of Chinese solar companies evading U.S. tariffs.

Trade issues with China have become a hot topic in the 2024 election, with both parties in the U.S. emphasizing a tough stance. Presidential candidates Biden and Trump are competing over who has a more strategic approach.

Led by Senator Sherrod Brown (Democrat, Ohio), the Democratic members of Congress wrote in their public letter, “It is obvious that China (the CCP) is illegally subsidizing its solar industry, intentionally harming the interests of American manufacturers.”

Brown called on the U.S. government to investigate Chinese companies with factories in Cambodia, Malaysia, Thailand, and Vietnam for engaging in unfair trade practices, evading U.S. tariffs, and harming the interests of the American solar industry and its workers.

A group of six Republican members of the House, led by Representative Claudia Tenney from New York, expressed a similar position in a public letter, stating, “We strongly support the petition for anti-dumping and anti-subsidy tariffs filed by the American Alliance for Solar Manufacturing Trade Committee.”

Legislators stressed that holding China (the CCP) accountable for its illegal trade practices will help diversify and secure the U.S. solar supply chain.

Brown’s Senate supporters include Senators Tammy Baldwin (Democrat, Wisconsin), Bob Casey (Democrat, Pennsylvania), John Fetterman (Democrat, Pennsylvania), Joe Manchin (Independent, West Virginia), Jon Ossoff (Democrat, Georgia), Jon Tester (Democrat, Montana), and Raphael Warnock (Democrat, Georgia).

Additionally, six Democratic House members have signed their support, including Marcy Kaptur (Ohio) and Chris Deluzio (Pennsylvania).

The American Alliance for Solar Manufacturing Trade Committee, representing the U.S. solar manufacturing industry, has submitted a petition to the government to investigate China’s illegal trade practices.

Republican lawmakers in the public letter pointed out that the Biden administration’s two-year suspension of anti-dumping and anti-subsidy laws has had “disastrous consequences,” allowing Chinese solar manufacturers with direct ties to the CCP to dump products in the U.S. without facing any penalties. They urge the U.S. government to “act promptly.”

Jason Dymbort, Executive Vice President and General Counsel of First Solar, one of the members of the alliance, stated in a release, “The U.S. has a rare opportunity to build a diversified, competitive solar manufacturing base to ensure energy security, create middle-class jobs, and generate economic value.”

“However, China (the CCP) monopolizes the market using unfair, anti-competitive, and illegal trade practices, depriving American solar manufacturers of a level playing field. These petitions are aimed at addressing this issue,” he added.

Based in Arizona, First Solar is the world’s largest thin-film PV module supplier and the largest solar module manufacturer in the Western Hemisphere.

According to Bloomberg, last month, the company surpassed the Chinese company Sungrow Power Supply Co. as the most valuable solar equipment manufacturer. This marks the first time since 2018 that a Chinese company has lost the title of “most valuable solar equipment manufacturer.”