America and Taiwan's Solar Dispute

World's second largest solar technology industry Taiwan, faced trade sanctions by the government of U.S. as a consequence of selling some components to the producers from China who sent finished modules to the U.S.

World's second largest solar technology industry Taiwan, faced trade sanctions by the government of U.S. as a consequence of selling some components to the producers from China who sent finished modules to the U.S. The makers of photovoltaic cells in Taiwan for the completed Chinese modules had to bear harsh penalty as the department of commerce crunches the financials to analyze how much did the industry of Taiwan make from the fourth quarter of 2012 to the third quarter of last year. The solar components could be slapped anyway as the United States is anxious about the trend of lower priced imports.


The solar technology industry in Taiwan started around 10 years ago with the growth of solar energy globally. It was worth $3.7 billion during the year 2013. The equipment has an annual capacity of 8,000 megawatts and therefore, it ranks as the world's second largest industry after China. The product specific sections are the cause behind raising the tariffs on any of them. The levels above 10% will likely hurt the overall orders and outrage the Taiwanese exporters.

In 2013, the threat of sanctions started with an International Trade Commission complaint from the Solar World Industries of the U.S. The government of U.S. supported it because in order to protect the unpopular state of the industry of U.S. As per Hsu, analyst with a Taipei based market research; the solar imports already claim 30 to 40 per cent of the domestic demand and cost 10 to 15 percent less. Taiwan under no circumstances affected the U.S. businesses but.

Hsu stated that Taiwan had no idea the Chinese module makers was exporting to the United States. The U.S. government imposed anti-dumping duties on the imported Chinese solar panels since October 2012. Hsu also said that Taiwan was just stuck in all this. Whether to sell outside or not was the decision of China. Taiwan is a supplier to Chinese therefore; it was not aware where the modules are sold.

Sean Kao, a senior analyst says that a rational interpretation of the criteria will not provide adequate support for the decision of the U.S. government to impose the countervailing and anti-dumping duties on the Taiwan based PV cell vendors. Many of the Taiwanese vendors are still pessimistic about the possible final ruling. They expect the United States will decide whether they are in favor of Taiwan or not, and will take into consideration its own interest.

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