China Firms Blast New U.S. Duties on Solar Cells

Chinese companies have slammed the United States as "short-sighted" and warned of a trade war after it imposed hefty duties on solar cells it said were being sold at artificially low prices.

The U.S. Commerce Department on Thursday slapped levies of between 31 and 250 percent on the Chinese solar cell producers in retaliation for the so-called "dumping".

The move is the latest in a long-running trade row between Washington and Beijing, who have clashed over a range of issues that have on occasion had to be settled by the World Trade Organization.

China's Suntech Power, which was specifically named in the U.S. government investigation, called the move out of touch with reality.

"These duties do not reflect the reality of a highly-competitive global solar industry," Andrew Beebe, Suntech's chief commercial officer, said in a statement late Thursday.

He said the company, the world's largest maker of solar cells, would work with the U.S. government to refute the duties.

"Despite these harmful trade barriers, we hope that the U.S., China and all countries will engage in constructive dialogue to avert a deepening solar trade war," Beebe said.

Another company named by the U.S. government, Trina Solar, said it would still attempt to serve the U.S. market despite the duties and remained committed to keeping prices low.

"This is simply what is required to unlock the next level of fossil fuel replacement in the United States," Mark Kingsley, Trina's chief commercial officer, said in another statement.

"Any duties are short-sighted impediments to this worthy goal."

Both Suntech and Trina will face duties of 31 percent, according to the U.S. ruling.

U.S. Customs was ordered to begin collecting bonds on imports into the United States, though the policy still requires final confirmation by the Commerce Department, expected in October.

The latest announcement follows an earlier U.S. decision that China was unfairly subsidizing solar cell exports and imposed duties of 2.9 percent to 4.7 percent.

Both moves take aim at a huge market that Chinese exporters have come to dominate with the help of vast state subsidies, their U.S. rivals claim.

Sales to the U.S. solar cell and solar panel market were worth $3.1 billion to Chinese producers last year, according to the Commerce Department.

The trade action came in response to a formal complaint to the U.S. government by producer SolarWorld Industries America.

Washington has stepped up efforts to protect U.S. manufacturers from Chinese products that it alleges benefit from deep subsidies and an artificially undervalued currency.