• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 12 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day The United States produced more crude oil than any nation, at any time.
  • 7 days e-truck insanity
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 6 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 5 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 7 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 7 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 10 days Bankruptcy in the Industry
Alex Kimani

Alex Kimani

Alex Kimani is a veteran finance writer, investor, engineer and researcher for Safehaven.com. 

More Info

Premium Content

Yellen Plans To Confront China For ‘Unfair’ Clean Energy Subsidies

  • Yellen: I intend to warn Beijing that its national underwriting for energy and other companies is creating oversupply and distorting global markets.
  • Yellen made the comments after visiting Georgia to see a newly reopened solar cell manufacturing plant.
  • A couple of days ago, China filed a complaint against the U.S. at the World Trade Organization, for electric vehicle subsidies arguing the requirements are discriminatory.
Yellen

U.S. Treasury Secretary Janet Yellen has revealed that she intends to warn Beijing that its national underwriting for energy and other companies is creating oversupply and distorting global markets when she pays the country an official visit.

"I intend to talk to the Chinese when I visit about overcapacity in some of these industries, and make sure that they understand the undesirable impact that this is having--flooding the market with cheap goods- -on the United States, but also in many of our closest allies, Yellen said in a speech in Norcross, Georgia.

“I will convey my belief that excess capacity poses risks not only to American workers and firms and to the global economy, but also productivity and growth in the Chinese economy, as China itself acknowledged in its National People's Congress this month," she added. 

Yellen made the comments after visiting Georgia to see a newly reopened solar cell manufacturing plant, which closed shop in 2017 because of stiff competition from factories in China. The factory has, however, re-opened thanks to generous solar and clean energy tax credits in the 2022 Inflation Reduction Act.

A couple of days ago, China filed a complaint against the U.S. at the World Trade Organization, for electric vehicle subsidies arguing the requirements are discriminatory.  Related: Citigroup Says 42% of Clients Have No Energy Transition Plan

China has pumped in more than $50 billion in wafer-to-solar panel production lines, 10x more than Europe, and also controls a staggering ~95% of the world’s polysilicon and wafer supply. Last year, the International Energy Agency warned of the dangers of the world relying so heavily on China’s solar anc clean energy sector.

"The world will almost completely rely on China for the supply of key building blocks for solar panel production through 2025. This level of concentration in any global supply chain would represent a considerable vulnerability,” the agency wrote in a special report.

China is so dominant that it’s now, single-handedly, changing global solar standards: Last year, a Chinese IT columnist declared that large silicons sized between 182mm and 210mm would become the world’s standard thanks to their market share growing from 4.5% in 2020 to 45% in 2021, adding that they would probably increase to 90% in the near future.

Other than heavy investments and subsidies, Beijing has started taking extra measures in order to maintain its leading status and global market share in renewable energy manufacturing. Last year, in a mirror image of what the U.S.  has been doing with its semiconductor lithography technology, China amended its rules to ban the export of several core solar panel technologies. Following the ban,  Chinese solar manufacturers are forbidden from using their large silicon, black silicon and cast-mono silicon technologies overseas, according to guidelines published by the Ministry of Commerce and the Ministry of Science and Technology.

China’s export restraints are Exhibit A on the need to rapidly scale American solar manufacturing,” Abigail Ross Hopper, president and CEO of the U.S. business lobby Solar Energy Industries Association, told WSJ after the Biden administration launched the IRA, which has been hailed as a game-changer for the solar sector.

Although China produces more than 80% of the world’s solar panels and modules, solar exports have faced heavy tariffs imposed by the U.S. over the past decade. This has forced some Chinese manufacturers to move their facilities to countries like Malaysia and Thailand in a bid to avoid the tariffs. However, Beijing does not approve this trend because it does not want them to take their core technologies abroad. Technology experts have pointed out that China wants to prevent India from becoming a  major competitor and one of the world’s leading solar panel suppliers.

Back in 2011, the U.S. Commerce Department ruled that China was dumping solar panels in the U.S. market and imposed duties on Chinese solar panels a year later. In June 2022, the Biden administration said it would waive tariffs on solar panels imported to the U.S. from Cambodia, Malaysia, Thailand and Vietnam for 24 months after Chinese solar firms moved their operations there. Previously, the U.S. placed tariffs on solar products from these countries and even on Taiwan, a close ally, after it deemed that Chinese manufacturers had moved their operations offshore to evade U.S. tariffs.

ADVERTISEMENT

By Alex Kimani for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on March 29 2024 said:
    The truth of the matter is that China’s manufacturing of solar panels and other accessories for installing solar energy is fat cheaper and more efficient than its America and EU counterparts.

    As they can’t compete with Chinese manufacturing, they start accusing China of flooding the market and imposing tariffs on Chinese exports and this leads to rising costs of installing solar power and a slowdown.

    The United States and the EU should deal with the core of the problem not the symptoms.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News