CPA Applauds Commerce Department for Initiating Investigation into Illegal Chinese Circumvention

WASHINGTON — The Coalition for a Prosperous America (CPA) released a statement after the Department of Commerce initiated an anticircumvention investigation into Chinese companies operating in Malaysia, Thailand, Vietnam, and Cambodia that are illegally circumventing existing antidumping and countervailing (AD/CVD) duty orders on solar cells and modules from China. The decision comes after Auxin Solar, Inc., a U.S. headquartered company that manufactures solely in America, petitioned Commerce to investigate. Earlier this month, Senators Rob Portman (R-OH) and Sherrod Brown (D-OH), and U.S. Representatives Bill Pascrell, Jr. (D-NJ) and Brad Wenstrup (R-OH), led bipartisan letters in both the Senate and House to Commerce Secretary Gina Raimondo urging her to accept the anti-circumvention petition filed by Auxin.

“In the face of clear evidence presented by Auxin, CPA is pleased that the Department of Commerce has chosen to initiate an investigation into Chinese solar companies illegally circumventing AD/CVD duties that were lawfully imposed on Chinese solar cells and modules,” said CPA Chairman Zach Mottl. “Despite the fear mongering and lobbying by special interests groups that advocate for Chinese solar manufacturers, the Biden administration has chosen to side with American companies and workers. Going forward, if President Biden wants to make good on his promise to create 10 million green new jobs, the administration should robustly enforce U.S. trade law, impose Section 201 tariffs on Chinese bifacial solar panels, strengthen Buy America rules, and work with Congress to pass tax credits and other forms of material support for domestic producers.”

CPA strongly supports the Biden administration initiating a circumvention investigation. These investigations are historically routine and based on long-standing U.S. law. Recently, they have become commonplace, especially on AD/CVD orders involving imports from China with the Department of Commerce self-initiating an inquiry last week concerning quartz surface products that are assembled in Malaysia using Chinese inputs.

Last year, CPA supported a group of American solar manufacturers that requested a circumvention ruling. Although the Department of Commerce rejected that request due to the anonymity of the companies and because the allegation did not assert country-wide circumvention, Auxin Solar’s petition cures those defects.

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