2010/09/09

(BN) China Clean-Energy Aid Triggers Trade Complaint From

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China Clean-Energy Aid Triggers Trade Complaint From U.S. Union
2010-09-09 16:33:43.159 GMT


By Mark Drajem
Sept. 9 (Bloomberg) -- The United Steelworkers union filed
a trade complaint with the U.S. government against renewable-
energy products from China, urging an investigation of subsidies
and preferences given by that nation.
Hundreds of billions of dollars in government support and
preferences give Chinese producers an unfair advantage over
competitors, the union said.
"Green jobs are key to our future," Leo Gerard, the
union's president, said today. "Right now, China is taking
every possible step, many of them illegal under international
trade laws, to ensure that it will control that sector."
The complaint that China is doing too much to help its
companies expand clean-energy sales contrasts with international
efforts to encourage renewable energy and reduce greenhouse-gas
emissions in order to curb global warming. The complaint says
that China's aid, unlike that in the U.S., discriminates against
foreign producers.
The union filed its complaint with the U.S. Trade
Representative's office under a procedure called Section 301.
The Obama administration has 45 days to decide if it will
investigate, a deadline that would require a decision before the
November congressional elections.
The U.S. trade office "will review the petition in
accordance with established procedures," Nefeterius McPherson,
a USTR spokeswoman, said in an e-mail.
To tackle climate change, all countries are seeking to
develop clean energy and the steps by China's government are in
line with World Trade Organization rules, said a press official
with the Chinese Commerce Ministry, who declined to be
identified because of the agency's rules.

Wind-Farm Deal

The United Steelworkers announced a deal last month with A-
Power Energy Generation Systems Ltd., based in Shenyang, China,
and Shenyang Power Group in which the companies would buy about
50,000 tons of steel to be produced in American mills to supply
production for a Texas wind farm. At the time, Gerard said the
threat of trade actions helped push the Chinese companies into
the deal.
Asia makes more than half the world's wind and solar energy
equipment and is widening its lead. China invested $34.5 billion
in low-carbon energy technologies last year, according to
Bloomberg New Energy Finance. The U.S. spent $18.6 billion.
A U.S. Energy Department report released Aug. 4 found that
an expanding share of wind-turbine equipment is being supplied
domestically, as companies from the U.S. and abroad seek to
reduce transportation costs and currency risks. U.S. content
increased to about 60 percent in 2009 from about 50 percent the
previous year, the department found.
Section 301 of U.S. trade law authorizes the government to
investigate foreign barriers to exports. Unlike cases targeting
imports into the U.S., such cases aren't aimed at raising
tariffs. It could lead to a U.S. complaint at the World Trade
Organization or direct negotiations with Chinese officials.

For Related News and Information:
Wind Stories: NI WIND <GO>
Carbon-market events: ECAL <GO>
Top stories on regulation and business: GBIZ <GO>
A-Power's financial analysis: APWR US <Equity> CH1 Q <GO>

--With assistance from Li Yanping in Beijing, Baldave Singh in
Perth and Todd White in Madrid. Editors: Steve Geimann, Romaine
Bostick

To contact the reporter on this story:
Mark Drajem in Washington at +1-202-624-1964 or
mdrajem@bloomberg.net.

To contact the editor responsible for this story:
Larry Liebert at +1-202-624-1936
or lliebert@bloomberg.net.