In early 2018, the Trump administration imposed 30% tariffs on imports of Chinese solar panels. Beijing filed a complaint with the World Trade Organization charging that the U.S. was unfairly supporting electric vehicle purchases.
China’s Ministry of Finance and State Taxation Administration have announced a reduction in the export tax rebate for photovoltaic products. Starting Dec. 1, the rebate for unassembled solar cells (HS Code 85414200) and assembled PV modules (HS Code 85414300) will drop from 13% to 9%.
Considering all the manufacturing stages for solar panels, which includes polysilicon and wafers, China holds more than 80 percent of global capacity. American manufacturers welcomed the changes. “These trade measures will begin to counter the pervasive Chinese government subsidies in solar manufacturing.
Tariffs on certain tungsten products will go from zero to 25 percent. Chinese companies produce more than 75 percent of the world’s polysilicon. Considering all the manufacturing stages for solar panels, which includes polysilicon and wafers, China holds more than 80 percent of global capacity. American manufacturers welcomed the changes.
The U.S. and other trading partners say China improperly subsidizes exports, giving exporters of solar panels and other products an unfair advantage in overseas markets, where its manufacturers charge lower prices thanks to government support. Washington also says China improperly pressures foreign companies to hand over technology.
To be sure, Chinese policies aimed at boosting solar manufacturing have led to economies of scale that have allowed prices for solar panels to plummet around the world. Chinese companies also make much more affordable electric vehicles than US manufacturers.