By Frank Andorka, Senior Correspondent
Reuters is reporting that China has filed a World Trade Organization (WTO) complaint against the United States over the solar tariffs President Donald J. Trump imposed in February.
Who could have seen THAT coming? (Everyone. Everyone saw this coming.)
From Reuters writers Dan Stanway and Muyu Xu:
China’s commerce ministry said a U.S. decision to subsidize renewable energy firms and impose tariffs on imported products has seriously distorted the global market and harmed China’s interests, firing the latest shot in a broader trade conflict.
This is what happens when you start a trade war – the laws of unintended consequences kick in and suddenly you’re fighting on 10 fronts simultaneously.
I must admit it’s a little rich that the Chinese are accusing the United States of subsidize its renewable energy firms. That must come as a huge surprise to SunEdison, Sungevity, Suniva and the like. But that irony aside, the latest battle of the solar tariffs – a battle that I’d like to remind everyone didn’t have to be fought, especially on behalf of two firms that no longer exist – will be waged and decided in the international trade court.
I’m taking odds right now that the Trump Administration responds to this decision by saying it won’t be bound by WTO rulings because “Something, something, America First, furriners, bafflegab, argle bargle.”
In filing the complaint, the Chinese Ministry of Commerce said this:
As the U.S. violations have severely distorted the global market for products like photovoltaics and seriously damaged China’s trade interests, China’s use of the WTO dispute settlement mechanism is a necessary measure to safeguard its legitimate rights and interests and maintain multilateral trade rules.
According to the ministry, though exports of solar modules have surged 21% this year, only a small fraction went to the United States, with the bulk going to India, a burgeoning solar market with the advantage of being much closer to China than the United States (which makes it cheaper to ship product to it).
No one knows how this dispute will ultimately turn out, but it once again points out how ridiculous the U.S. decision to impose solar tariffs is. Keep this case on your radar; something tells me it won’t be going away any time soon.