U.S. tariffs on Chinese solar panels benefit neither side

The U.S. Commerce Department's final decision to impose heavy tariffs on Chinese solar panels will benefit neither side, but escalate trade tensions between the two countries.

The department on Wednesday determined that Chinese producers and exporters sold crystalline silicon photovoltaic (PV) cells in the U.S. market at dumping margins from 18.32 to 249.96 percent, and received countervailable subsidies at margins of 14.78 to 15.97 percent.

The double duties would not only harm the Chinese solar industry, but also burden U.S. solar business with rising costs amid an economic downturn.

With competitive and affordable Chinese solar cells and panels, U.S. photovoltaic installations totaled 742 megawatts in the second quarter of 2012, up 45 percent over the prior quarter and 116 percent over the same period last year, driving solar energy costs down dramatically in the interests of U.S. end users.

Washington is repeating the same mistake it made three years ago when the Obama administration slapped tariffs on Chinese tyres.

After three years, a study by the Washington-based Peterson Institute for International Economics found that the U.S. tyre tariffs have saved few jobs at high costs. Only 1200 more jobs were provided in the industry in three years, while additional costs of American consumers have surpassed 1.1 billion U.S. dollars due to higher tyre prices, thereby causing a corresponding downturn in retail industry.

It appears to be a tradition for Washington to take a tougher stance against China in the presidential election year. For U.S. politicians, China is a punching bag easy to use in their campaign to please ill-informed voters.

Earlier this week, the U.S. House of Representatives Intelligence Committee issued a report, alleging that two leading Chinese technology companies, Huawei and ZTE, pose possible threats to U.S. national security. The move would make it extremely hard for the two companies to enter the U.S. market, despite the fact that they are operating normally in over 140 countries.

The series of protectionist moves against Chinese companies or products have threatened the China-U.S. trade relations and may lead to a lose-lose result for both sides.

The Chinese Ministry of Commerce has repeatedly urged the United States to abide by its commitment against protectionism and work together with China and other members of the international community to maintain a free, open and just trade environment.

As the world's two largest economies, a smooth and undisturbed trade tie between China and the United States is also conducive to the global economy, which is undergoing a weak recovery.

The U.S. International Trade Commission, a separate government agency, is scheduled to make a final call in the Chinese solar panel case after November's presidential election. A rational decision would be welcomed and would surely benefit all.