Now China to probe U.S. renewable energy support | Reuters

November 25, 2011
This is bad…Very bad.
(Reuters) – China on Friday announced an investigation into government policy and subsidy support for renewable energy, weeks after the United States decided to probe sales of Chinese-made solar panels.

The announcement by the Commerce Ministry also comes after China’s solar industry association said on Tuesday that Chinese solar companies may ask Beijing to launch an anti-dumping and subsidy probe into imports of U.S. polysilicon, the raw material used to make solar cells.

The tit-for-tat investigations underscore simmering trade tensions between China and the United States, as leaders warn of a rising tide of protectionism amid gloomy global economic tidings.

“The Ministry of Commerce has decided to initiate a trade barrier investigation into policy support and subsidies for the U.S. renewable energy sector,” a statement on the ministry’s website (www.mofcom.gov.cn) said.

It said Chinese companies argued that the U.S. policies “constitute a trade barrier against the export of Chinese renewable energy products to the United States”.

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