China says US tariffs on solar panels violate trade rules, complains to World Trade Organisation

China’s commerce ministry said a US decision to subsidise 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.

Beijing has lodged a complaint to the World Trade Organisation to help determine the legality of the US policies, saying they not only harm China’s rights but also undermine the WTO’s authority, the ministry said late on Tuesday.

Washington said in January that it was imposing what it called safeguard tariffs over four years – with a 30 per cent tariff in the first year reduced gradually to 15 per cent in year four.

“As the US 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,” the commerce ministry said.

The move is not expected to have an immediate impact on China’s major solar manufacturers, including GCL, Jinko Solar and Canadian Solar, as their exposure to US markets was reduced after earlier trade disputes.

A Chinese executive, speaking on condition of anonymity, said that US solar tariffs were a “sideshow” and had little effect on Chinese business.