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On September 9, USW submitted a 5,800-page pleading to the USTR office in accordance with Section 301 of the U.S. Trade Act of 1974. However, due to the technical reasons of the USW website, an "overview document" on the prosecution was released this week.
“Section 301†stipulates that USTR is obliged to accept prosecution from the industry or enterprise and investigate foreign policy measures that may harm the interests of the domestic industry. The US President then makes a ruling and negotiates with the foreign government. Unilateral remedies can be taken if necessary. .
In its suing documents, USW stated that the Chinese government has adopted discriminatory laws and regulations, conditions for technology transfer, control of key raw materials, and large-scale government subsidies, and in fact has created measures that benefit local companies’ value of “hundreds of billions of dollarsâ€. USW alleges that such measures are broadly divided into five categories:
First, reduce the availability of key raw materials. The production of solar panels, wind turbines, high-efficiency batteries, and high-efficiency lighting equipment depends on a large amount of rare earth elements. USW believes that China accounts for 90% of the world's production of these elements, but adopts various export control measures, such as 2010 rare earth elements. Export quotas have been reduced by half from the previous year. This has pushed up international prices and caused a serious shortage of raw materials for production by foreign companies.
USW stated that the raw materials under this accusation coincided with the previous case of China, which was proposed by the United States, Europe, and Mexico, to restrict the export of nine kinds of raw materials.
Second, in violation of WTO regulations prohibiting the provision of subsidies in accordance with export performance and “localizationâ€, which include direct subsidies for Chinese domestic companies through a variety of special funds; setting up research and development funds, but the supporting target must meet the export volume of 15 million. Above US$; In 2008, China’s Export-Import Bank’s export credits for the new energy industry were more than five times that of the U.S. Export-Import Bank and even larger than the G7 countries’ total; China Export Credit Insurance Corporation provided guarantees for domestic-funded enterprises with lower-cost premiums. .
Thirdly, discriminatory measures against imported goods and foreign companies, including the fact that wind power and solar power plants still have “localization†regulations; 5% discount on local wind energy companies’ bid prices; and foreign companies excluded from the UN carbon In addition to the emission reduction incentive system, foreign-funded joint ventures with state-owned enterprises are required, and production is moved to China. For example, USW stated that First Solar had to establish an additional domestic supply chain in China, and that American Semiconductor Corporation (ASC) also completely shifted transformer production to China.
Fourth, technology transfer regulations. Including Siemens, General Electric and other companies must sign the "technology for market" agreement. In 2009, Evergreen Solar in the United States was forced to enter into a joint venture when it encountered funding difficulties, accompanied by technology transfer conditions.
Fifth, subsidies. For example, USW stated that China’s subsidies for the new energy industry in the economic stimulus plan are US$216 billion, which is twice that of the United States, and half of the total scale of subsidies for new energy in the global national stimulus plan.
USW believes that the above policy has caused two major damages to the United States: the international market has reduced the US’s export competitiveness, depressed the price in the domestic market, and reduced the sales of local companies. For example, it said that from 2006 to 2009, sales of solar panels in China increased eight times in Europe, China's market share in Europe rose to 34%, the United States has dropped to 3.7%. In the United States, in the past two years, the United States has increased its demand for solar energy by 41%, China’s solar panel output to the United States has doubled, and the United States’ domestic output has only increased by 7%. Four major US manufacturers have lost 580 jobs.
According to the regulations, USTR has 45 days to decide whether or not to accept after filing a lawsuit. If the decision is accepted, it may be followed by a year-long investigation, which will also involve consultation with the Chinese government.
After winning a favorable ruling on the import of tires last year, the United States Steel Workers Union (USW), one of the largest trade union organizations in the United States, recently sued the Chinese industry to its own domestic trade arbitration institutions. This time, the goal was locked in the clean energy field in China. .