2010/09/08

Fwd: China Clean-Energy Aid to Draw Complaint by U.S. Steelworkers

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China Clean-Energy Aid to Draw Complaint by U.S. Steelworkers
2010-09-09 01:15:26.235 GMT


By Mark Drajem
Sept. 9 (Bloomberg) -- The United Steelworkers union said
it will file a trade complaint with the U.S. government against
renewable-energy products from China, urging investigation of
subsidies and preferences given by that nation.
The case "reveals five major areas of protectionist and
predatory practices utilized by the Chinese to develop their
green sector at the expense of production and job creation here
in the U.S.," the American union said in a statement,
indicating specifics will be provided later today.
The complaint that China is doing too much to help its
companies expand their clean-energy sales contrasts with
international efforts to encourage renewable energy and reduce
greenhouse-gas emissions in order to curb global warming.
Nations including the U.S. and China plan to meet in Cancun.
Mexico, at the end of November to renew climate-change talks.
Legislation to limit carbon emissions and set requirements for
the use of renewable energy have stalled in the U.S. Senate.
The union's filing will be made to the U.S. Trade
Representative's office. The Obama administration will have 45
days to decide if it will investigate the petition under U.S.
law.
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 they would buy about 50,000
tons of steel to be produced in American steel mills to supply
production for a Texas wind farm. At the time, Leo Gerard, the
union's president, said its threat of trade actions helped push
the Chinese companies into the deal.

Asia's Lead

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 wind turbine contains about 8,000 parts, and many of
those may not be made in the U.S.
A U.S. Energy Department report released Aug. 4 found that
a growing share of wind-turbine equipment is being supplied
domestically, as companies from the U.S. and abroad seek to
minimize 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.
The case the Steelworkers are filing will be made under
Section 301 of U.S. trade law, which authorizes the government
to investigate foreign barriers to exports. Unlike cases
targeting imports into the U.S., Section 301 cases aren't aimed
at raising tariffs.

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>

--Editors: Larry Liebert, John Viljoen.

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.