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The following article was published in our article directory on October 26, 2010.
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United Steelworkers Association Five Complaint

Article Category: Business

Author Name: xia zihui

American Iron and Steel Association, China's green technology workers violated the rules of Section 301 WTO complaint

1. Key commodity exports restricted

A lot of new energy technologies should be dependent on certain key raw materials can not be replaced. Currently 90% of these key raw materials from China. The United States did not present a rare production of this key raw materials. But China through export quotas, taxes and licensing and other procedures strictly limit the export of the United States and other countries, users of these materials.

2. Continue to provide subsidies to export subsidies and internal market

When China joined the WTO commitments, under the Subsidies and Countervailing Measures (SCM) agreement to remove all unreasonable subsidies. But China did not stop the preferential treatment-related projects and enterprises, at least we found the following five projects a serious breach of the agreement the third. Such as the 1997's "wind plan", China has provided equipment by domestic loan interest subsidies for wind power projects and priority grid power; 2008, the Ministry of Finance to establish a "wind power equipment industry special fund" to assist the key components of the use of domestic wind turbine business by at least 5% -10% of the costs; the establishment of "export product research and development fund" incentive exports accounted for half of output reached $ 15,000,000, or high-tech enterprises; China National Technical Import and Export Bank for the export of green credit policy priority.

3. Discrimination against imported products and foreign companies

China's imports of clean energy products for clean energy companies and foreign discrimination embodied in the following areas: the localization of wind and solar energy companies have asked the Chinese government has asked the U.S. company First Solar, a solar power plant in the construction of the facility and must supporting one in the equipment supply chain in China; wind energy projects in the country to give priority to domestic companies bidding; not allow foreign companies in China to obtain carbon credits.

4. Provided to foreign investors, technology transfer requirements

Chinese law gives the government to approve or refuse the right of foreign joint venture agreement. Chinese government claims that such an agreement needs to include the transfer of advanced technology, or joint venture requirements may be rejected. Some advanced new energy production companies, such as General Electric and Siemens have started publicly complaining about the Chinese government's "technology-for-market" policies.

5. To trade-distorting subsidies in China

The Chinese government on the new energy cause a lot of new energy technologies of their trade distorting subsidies are also hurt producers in other countries. These subsidies are helping Chinese manufacturers to expand production scale and market share, while reducing the market price, then the international competitors out of business. The export of U.S. companies in China are constantly being replaced, even the U.S. market share of less and less, the price plummeted, while there have been workers do lose their jobs.

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