U.S. probe into Chinese clean energy policies, dubbed Section 301, will harm the
United States itself by revealing more of its own subsidies to new energy
businesses, Zhang Guobao, head of the National Energy Bureau, said Sunday
evening.
The U.S. Trade Representative's office started the investigation
on Oct. 15 in response to the United Steelworkers Union's complaint on Sept. 9
that China's support for its renewable energy industries gave Chinese producers
unfair edges over competitors.
"Chinese subsidies to new energies
companies are very small, but the United States had subsidized the new energy
enterprises with 4.6 billion U.S. dollars in cash in the first nine months of
2010, including 3 billion U.S. dollars to wind power enterprises," Zhang
said.
Zhang rejected charges that China's wind power bid prefers Chinese
enterprises and has discriminated against foreign companies.
"China has
no discriminatory items on new energy equipment producers," Zhang
said.
Many foreign wind power equipment producers participated in bidding
in China and some won biddings from 2003 to 2005, Zhang said.
But chances
for them to win have been dropping as they offer prices much higher than the
Chinese companies, Zhang said.
"In contrast to China's open attitude, the
United States issued a bill in 2009 to subsidize renewable energies, energy
efficiency and smart power grid sectors. Among the subsidies, 25.2 billion U.S.
dollars went to the renewable energy sectors," Zhang said.
The subsidized
U.S. solar power sectors are required to use domestically made equipment in the
six-month rule starting Aug. 16 in 2010, Zhang said.
"How much on earth
has China exported new energy products to the United States?" Zhang
asked.
"We have only exported three wind turbines to the United States,
or less than 10,000 kw (of generating capacity). The U.S. General Electric
Company, however, exported 80,000 kw of wind turbines to China in 2005 and the
figure increased to about 340,000 kw in 2009," Zhang said, adding that its total
wind turbine exports to China topped 1.13 million kw in the past five
years.
"China's wind power (equipment) market stood at 85 billion yuan in
2009, about 21 percent of which was imported from overseas," Zhang said, adding
that it showed China's wind power provided large opportunities for foreign
producers to send exports to China.
China and the United States should
carry out dialogues in new energy sectors, Zhang said.
The United States
had proposed to communicate through video meetings on Oct. 12 with China on new
energy products, but it also had been postponing the dialogue before declaring
the probe on Oct. 15.
"I was very much astonished at it, wondering what
the United States wants. Do they want fair trade, a normal dialogue or
transparent information? ...Judging from the procedures, I believe (politicians
of) the United States are more willing to get votes," Zhang said.
In a
statement Saturday, China's Ministry of Commerce (MOC) expressed "regret" over
the U.S. probe on Chinese clean energy products and said China would defend its
interests in the World Trade Organization (WTO) rules.
"The union's
complaint is groundless and irresponsible" as both parties should act in line
with the WTO rules, said an official with MOC's Bureau of Fair Trade for Imports
and Exports in its statement.
The statement said the United States was
subsidizing up to 2,300 energy-related programs, including clean-energy
projects.
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