China poised for tower dumping talks with US

UNITED STATES: The Chinese government has said it will begin talks with the US over its investigation into whether Chinese and Vietnamese tower makers are selling their products on the its market at unfairly low prices.

A wind turbine tower being produced in Jiliang
A wind turbine tower being produced in Jiliang

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The US investigation was announced in January. As part of it, the US Department of Commerce (DoC) will also probe whether China’s government is overly subsidising its tower companies. The probes could lead to duties slapped on towers imported to America from China and Vietnam.

Vice-minister of Chinese Ministry of Commerce (MoC) Jiang Zengwei said the talks would take place through the industrial associations.

Jiang added: "Chinese wind power products are considerably competitive in the world market. The United States has taken protectionism measures against these products. We have taken notice of the sanctions."

In January, the China Wind Energy Association, claimed the US investigation would make little difference to China's wind industry.

Shi Pengfei, vice president of China Wind Energy Association, said the probe by the US DoC will not have a big impact on the Chinese industry because most wind-tower companies are focused on the Chinese market.

In a statement in January in response to the probe, the Chinese MoC said: "The act will not only hamper bilateral cooperation in the field of new energy and harm the interests of US industries, but also go against global efforts to tackle the challenges of climate change and energy security."

China’s tower makers allegedly undercut US tower prices by 213.5%, while Vietnamese companies allegedly sold their products for 142% less

In 2010, US imports of towers from China were worth $103.6 million. Imported Vietnamese towers were valued at $51.9 million.  

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