China to probe PV materials dumping by USA and South Korea

China counters a US move to penalize its solar companies with the threat of stiff import duties on a vital solar energy material.

China has indicated a willingness to impose trade duties on U.S. imports of polysilicon, a vital raw material in making solar cells, in the latest instance of mounting tensions between both major solar manufacturers. China also intends to take action against South Korean polysilicon imports.

The Ministry of Commerce said that it would open anti-dumping and anti-subsidy probes on both U.S. and Korean polysilicon imports. Chinese officials have threatened to impose trade duties on U.S. shipments of polysilicon if the United States penalizes Chinese solar companies.

The U.S. said it was disappointed with the Chinese move and would vigorously defend its interests in the case.

Western solar companies have been at odds with their Chinese counterparts for years, alleging they receive lavish credit lines to offer solar modules at cheaper prices, while European players struggle to refinance.

Earlier this year, the U.S. imposed two new import duties totaling about 35% on solar equipment from China, citing the country's unfair support of its industry and illegal dumping of inventories in the U.S. market.