14 June, 2012
Legal News & Analysis – Asia Pacific – China – International Trade
On May 24, 2012, China’s Ministry of Commerce (MOFCOM) published Notice No. 26 [2012] announcing the preliminary results of the foreign trade barrier investigation against US government policy support and subsidies for the renewable energy industry in several US states.
The China Chamber of Commerce for Import and Export of Machinery and Electronic Products and the New Energy Chamber of the All-China Federation of Industry & Commerce filed a petition on October 24, 2011 and initiated a formal investigation on November 25, 2011. The investigation covered products, equipment and accessories related to wind energy, solar energy, water energy, and other types of renewable energy.
In the preliminary results, MOFCOM concluded that the following six US subsidy programs constituted prohibited subsidies as defined under the countervailing rules of the World Trade Organization (WTO):
- State of Washington: Renewable Energy Cost Recovery Incentive Program
- State of Massachusetts: Commonwealth Solar II
- State of Ohio: Ohio Wind Production and Manufacturing Incentive Program
- State of New Jersey: Renewable Energy Incentive Program
- State of New Jersey: Renewable Energy Manufacturer’s Incentive Program
- State of California: Self-Generation Incentive Program
Interested parties can submit comments regarding the preliminary results to MOFCOM within 20 days from the date of the announcement. A definitive decision will be made no later than August 25, 2012. In the case of a definitive decision, MOFCOM will either hold bilateral consultations with the US government, or request for a settlement mechanism before the WTO, or take any other proper measures, according to circumstances.
For more information please visit:
Please note this link is to a Chinese language website.
For further information, please contact:
Samuel Scoles, White & Case
Tong Yu, White & Case
Christopher Corr, White & Case
Patrick Ma, White & Case