China probes America’s renewable energy policies

China has launched an investigation into US subsidies for renewable energy companies.

The move comes after the US Commerce Department said this month it would investigate complaints by SolarWorld Industries America that China was selling solar cells and panels in the US market at below the cost of production.

The Chinese investigation would cover solar, wind and hydropower products and equipment and six projects in Massachusetts, Ohio, Washington, New Jersey and California, the commerce ministry said in a statement.

It would investigate complaints that US “support policies and subsidies” for the renewable energy industry breached World Trade Organisation rules and created “obstacles” for the development of China's domestic sector.

The investigation will last until May 25 but can be extended until August 25 if necessary.