US should not escalate its photovoltaic trade dispute with China

The Sino-US photovoltaic trade dispute is getting worse. In June and July this year the United States launched anti-dumping and countervailing probes into Chinese exports of photovoltaic products. The US Commerce Department made a preliminary affirmative determination that Chinese crystalline silicon photovoltaic products had been sold at dumping margins ranging from 26 percent to 165 percent in the United States.

In recent years, China's burgeoning photovoltaic industry has encountered increasing trade friction, particularly from the EU and the US. The dispute between China and the EU was finally solved based on compromise, but the dispute between China and the US seems to escalate. Why is the US making difficulties for China's photovoltaic industry?

China's photovoltaic industry not only creates large numbers of jobs in America in the field of sales and after-sale services, but also offers cheap and good quality products to the American public. Even so, the US continues to thwart imports of China's photovoltaic products. It is clear that the US intention is to push Chinese photovoltaic companies out of the US market.

Companies engaged in the same business can be opponents but can also become partners. The US is not managing its photovoltaic trade dispute with China sensibly. In expelling all Chinese photovoltaic enterprises it seems that the US is getting the upper hand, but the result is likely to be a loss to both countries. Chinese companies lose their markets and the US pays higher prices. The US commerce department's determination is likely to lead to higher prices for its solar energy products, which will derail the development of clean energy. If the US were willing to engage in talks with China, a win-win situation for both sides could be achieved. Sadly, the US is unwilling to do so.

Cooperation can benefit both countries while conflict will hurt both sides. Undue trade protectionism can hurt China and the US.