President Obama’s election victory has dominated US headlines over the last 2 days, but Washington showed it was still hard at work with news that the US trade watchdog has finalized punitive anti-dumping tariffs against Chinese solar panel makers. In a way, this kind of quiet ending seems appropriate for a drawn-out process that began more than a year ago with a Congressional probe into a bankrupt US solar firm. With this trade issue now resolved, China, which produces more than half of the world’s solar panels, can now focus on simply saving an industry that is bleeding cash due to a huge oversupply glut.
Tag Archives: Yingli
Solyndra Lawsuit: War of the Solar Dead Solyndra发难 光伏业者拼个你死我活
The fight for survival among the world’s embattled solar panel makers is starting to look more like a battle of the dead, with word that bankrupt US player Solyndra is suing 3 of its biggest Chinese rivals over allegations of running an illegal cartel. (English article) Some of you might be saying: “Wait a minute, doesn’t Solyndra have better things to do than to be filing lawsuits against rivals who are also flirting with bankruptcy?” If that’s the question, then the answer appears to be “no”. Perhaps the failed Solyndra is still seeking some final respect, and also perhaps some money through a quick settlement of this lawsuit to repay a long list of creditors that includes the US government.
China Gets Serious on Solar Energy 中国政府开始拯救光伏行业
After talking for much of the past year about plans to develop its solar power industry, Beijing may finally be starting to transform its words into action based on the latest signals coming from mid-sized panel maker JA Solar (Nasdaq: JASO) and an unusual move by leading US manufacturer First Solar (Nasdaq: FSLR). These 2 developments are interesting from a number of angles, as they could provide a welcome lifeline to the struggling global solar panel sector and also help to diffuse trade tensions with the west, which accuses China of unfairly subsidizing its industry. But before those tensions can really ease, Beijing will have to show it won’t favor its own solar panel makers in bidding for new China-based projects at the expense of western rivals. It will also have to take more concrete steps to wean its sector from the kinds of unfair subsidies behind the western complaints, including policies like low interest loans and export rebates.
More Solar Outrage Over EU Probe 欧盟光伏倾销调查触发众怒
The headlines are filled this morning with chatter on the latest news that the European Union is launching an anti-dumping probe into Chinese solar panel makers, following a similar investigation by the US that is likely to result in punitive tariffs by the end of this year. In addition to news of the probe itself, most of the major Chinese panel makers have issued their own statements protesting the move, and Beijing has also expressed regret over the decision. Rather than always turning to these predictable displays of outrage and disappointment each time they receive a setback in this year-long dispute, the Chinese players might consider trying a more conciliatory approach if they really want to avoid a trade war over an industry that everyone agrees will be critical to the development of long-term sustainable energy sources.
Solar Trade Wars: Showdown Coming? 中西方太阳能贸易战离摊牌已不远？
A new flurry of noise indicates a showdown may be imminent in the ongoing solar trade wars between Beijing and the west, reflecting the very real possibility that many of China’s top players may be on the brink of bankruptcy due to a prolonged downturn for their sector. The sudden flurry of new noises comes as yet another top manufacturer, Yingli Green Energy (NYSE: YGE), has just pre-announced second-quarter results that show the industry’s long-anticipated recovery may be weaker than expected. (company announcement)
News Digest: May 31, 2012 报摘： 2012年5月31日
The following press releases and media reports about Chinese companies were carried on May 31. To view a full article or story, click on the link next to the headline.
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◙ Huawei, ZTE (HKEx: 763) Say Have Yet to Be Notified of Europe Anti-Dumping Probe (Chinese article)
◙ Commerce Ministry Urges B2C Sites to End Price Wars, Not Optimistic (Chinese article)
◙ US Sets Preliminary Duties on China Wind Towers (English article)
◙ Yingli Green Energy (NYSE: YGE) Reports Q1 Results (English article)
◙ Youku (NYSE: YOKU) Slowly Taking Over Tudou (Nasdaq: TUDO) Management (Chinese article)
Solar Shares: De-listings Ahead? 太阳能股票：未来会退市？
Bottom line: Several of China’s struggling solar shares are in danger de-listing, which could finally push some to consider mergers with rivals to save themselves.
Related postings 相关文章:
◙ Solar Storm Heats Up in US, China 中美太阳能产品征税之争升温
◙ Solar Comments: Consolidation Chinese Style? 太阳能行业：中国式整合
◙ Passive Beijing Blasts New US Solar Tariffs 中国炮轰美高关税不实用 解决太阳能产品纷争需更主动
Solar War Reignites With Big US Tariffs 美国拟对中国太阳能电池高征税
Just when it looked like a trade war had been averted in the important solar energy sector earlier this year, the US Commerce Department has surprised everyone by recommending high punitive tariffs for China’s solar panel makers, casting a huge new cloud over this important industry. Chinese solar shares all tanked on the news, with industry leaders Suntech (NYSE: STP), Trina (NYSE: TSL) and Yingli (NYSE: YGE) all tumbling by 5 percent or more after the news came out, re-approaching all-time lows reached late last year at the height of the sector’s current downturn due a global supply glut. I have no doubt that this isn’t the end of this story, and we’re likely to soon hear an angry response from Beijing, which has taken some steps in recent months to try and show it is weaning its solar cell makers from the kinds of government-sponsored subsidies that were the source of the US complaint against a group that now supplies more than half of the world’s solar cells. In the latest development in this case, the US Commerce Department has announced that all China-produced solar cells will be subject to punitive tariffs ranging from 31 to 250 percent. (English article) That figure was sharply higher than an earlier indicator, which saw the Obama administration recommend relatively light tariffs of up to 4.7 percent after the Commerce Department first ruled earlier this year that Chinese panel makers did indeed receive unfair subsidies in the form of measures like low-interest loans from state-owned banks and export rebates. (previous post) Based on statements from Suntech and Trina it appears that these newest tariffs are both still preliminary and not final, and that most companies will be subject to the lower end of the range, or about 31 percent. But clearly this story is still not finished. It’s hard to say what is going on behind the scenes, as the earlier low tariffs and this latest round of much higher recommendations send clearly different signals. I suspect the earlier lower numbers were designed to send a signal to Beijing that a trade war could be averted if China took steps to reduce its government support for the sector. If that’s the case, then perhaps this latest round of recommendations is designed to show Beijing that it needs to move more quickly in weaning its solar companies from state support or risk seeing its companies subjected to these higher tariffs that could seriously hurt development of the global industry. Without access to more information it’s difficult to guess intelligently what’s really happening here. But having followed this conflict for nearly a year now since it first broke out, I still predict it will eventually be settled in a way that makes everyone somewhat happy, but also forces both sides to make sacrifices. In China’s case, the country needs to move more quickly with new high-profile steps to show it is ending its unfair subsidies. If it does that, I could still see the US imposing the previously discussed lower tariffs when it announces its final decision.
Bottom line: The latest twist in the US trade war with China over support for its solar panel makers may be a pressure tactic to make Beijing move more quickly to end unfair subsidies.
Related postings 相关文章:
◙ Suntech, Canadian Solar in Latest PR Moves 尚德电力和Canadian Solar就西方倾销顾虑作出回应
Solar Tariffs: US Takes Middle Road 太阳能关税：美国采取折中路线
After months of haggling and suspense, the US has finally made its decision in the contentious anti-dumping case against Chinese solar cell makers and found a middle ground in the form of a relatively light punishment accompanied by signals that Beijing needs to ease its unfair support for this industry. In the end, the Obama administration probably realized that it needed to take some kind of punitive action to satisfy critics of China’s strong support for its solar sector, especially in an election year. But at the same time, he also probably realized it’s in no one’s interest to deal a fresh blow to this already struggling sector developing sustainable energy alternatives to replace the world’s current dependence on fossil fuels. According to media reports, after a months-long investigation dating back to last summer, the Obama administration has finally decided to levy punitive tariffs of up to 4.7 percent — a relatively modest amount — on Chinese panels exported to the US. (English article) I suspect this relatively modest figure was probably the result of behind-the-scenes talks with Beijing, which has probably quietly agreed to scale back some of the indirect subsidies, such as cheap bank loans and tax rebates, that were the source of the complaint. Reaction from actual companies has been guarded so far, but looks cautiously optimistic that a crisis has been averted for now. Industry leader Suntech (NYSE: STP) indicated that the relatively benign tariff of 2.9 percent imposed on its products vindicated its assertion that it wasn’t receiving unfair government subsidies. (company announcement) It also pointed out that it has manufacturing facilities in the US, pointing to a trend that may see many of China’s solar panel makers set up production bases in the western markets that are their biggest customers to show they can also help to contribute to those local economies. Another solar company, Yingli (NYSE: YGE) was similarly cautious in its reaction, simply thanking its customers and reiterating that it is not unfairly subsidized and that punitive tariffs are bad for the entire industry. (company announcement) Investors were certainly cheered by the decision, with Suntech and Yingli shares both up around 13 percent on Tuesday. I should emphasize that this decision is just preliminary, but there’s no reason it shouldn’t become final if everyone finds it agreeable. That said, I would expect to see Beijing make some face-saving moves in the next couple of months to show it is quietly scaling back many of the practices that led to this complaint in the first place, which could include ending export tax rebates and pushing companies to seek new financing from true commercial banks rather than state-controlled Chinese lenders. If that happens, look for this conflict to quietly fade, letting the industry focus its sights on returning to profitability and improving its technology.
Bottom line: Preliminary US anti-dumping tariffs against Chinese solar panel makers look largely symbolic, and are likely to be followed by similar conciliatory moves by Beijing.
Related postings 相关文章:
◙ Price Trumps Tech For Solar 光伏投资者重技术但更重产品价格
◙ New Solar Storm Brews in Europe 欧盟或发起反倾销调查 中国光伏业再蒙阴影
◙ Yingli Results: Rescue En Route From China? 英利财报：来自中国政府的营救？
News Digest: March 1, 2012 报摘： 2012年3月1日
The following press releases and media reports about Chinese companies were carried on March 1. To view a full article or story, click on the link next to the headline.
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◙ Unicom (HKEx: 762) Launches “Stealth” Attack on China Telecom (HKEx: 728) iPhone (Chinese article)
◙ Spreadtrum Communications (Nasdaq: SPRD) Announces Q4 and Fiscal Year Results (PRNewswire)
◙ Apple (Nasdaq: AAPL) Says Allowing Proview to Use iPad Brand Would Harm Consumers (English article)
◙ Yingli Green Energy (NYSE: YGE) Reports Q4 and Full Year Results (PRNewswire)
◙ GOME Signs Online E-Commerce Deal With Dangdang (NYSE: DANG) – Source (Chinese article)
◙ Latest calendar for Q4 earnings reports (Earnings calendar)
News Digest: February 22, 2012 报摘： 2012年2月22日
The following press releases and media reports about Chinese companies were carried on February 22. To view a full article or story, click on the link next to the headline.
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◙ Alibaba.com (HKEx: 1688) Reports Q4 Results, Announces Privatization Plan (Results; Plan announcement)
◙ US Power Firm AES (NYSE: AES) Eyes China Asset Sales: Sources (English article)
◙ Canadian Solar (Nasdaq: CSIQ) Raises Q4 Shipment Guidance to 430-440 MW (PRNewswire)
◙ KKR, TPG Among Firms Eyeing Nasdaq-listed AsiaInfo (Nasdaq: ASIA) -Sources (English article)
◙ Yingli Green Energy (NYSE: YGE) Pre-announces Preliminary Q4, Full Year Results (PRNewswire)
◙ Latest calendar for Q1 earnings reports (Earnings calendar)
