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America’s new move… India may face a big blow, 1.6 billion dollars at stake! Having taken a big step America has started an investigation regarding solar panels, in which it is alleged that Chinese-owned companies are spoiling the trade system in America through other countries.
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America has started a new investigation, which can give a big blow to many countries including India. Also, trade relations between India and America can deteriorate further. This investigation by America can harm an industry worth $ 1.6 billion. The industry we are talking about is solar energy. America imports solar panels from India, Laos and Indonesia. America has now started investigating and analyzing this sector, about which there is speculation that new tariffs can be imposed. India will be especially affected by this, because America has already imposed a 50 percent tariff on India.
Investigation on Chinese companies
The American International Trade Committee (ITC) on Friday unanimously began an investigation, which is focused on the claim that China-supported companies are using other countries to avoid existing tariffs and increase their dominance in the American market.
Billions of dollars of investment at risk
The ITC argued that low-cost imports from India and other countries are increasing, which is reducing domestic production and threatening billions of dollars of investment in clean energy. Tim Brightbill, lead lawyer for the Alliance for American Solar Manufacturing and Trade, said that today’s decision of the ITC confirms the allegations made in our petitions.
He said that other Chinese-owned companies in Laos, Indonesia and India are unfairly influencing the system, reducing American jobs and investments.
Loss to $1.6 billion industry
The petition for investigation was filed in July, which includes major solar companies such as First Solar and Qcells. According to their data, imports from these three countries increased to $1.6 billion in 2023 from only $289 million last year. It is believed that most of this has come from countries which are already facing US tariffs.
It could be a big blow for India
The petition alleges that Chinese companies working through India and other countries are getting government subsidies and sell products below the cost of production, thereby violating US trade laws. Although the investigation is focused on all three countries, India, which is already in tension with the US over various tariffs and visa restrictions, may now get another big setback for it.
When can the investigation be completed?
The US Commerce Department will now continue its parallel investigation, with an initial decision on anti-subsidy tariffs expected by October 10 and a final decision by December 24.
