The complaint could fan a simmering rivalry between the two countries over the Chinese government’s alleged use of unfair trade practices so that its domestic manufacturers of wind turbines, solar panels and other clean technologies could get the upper hand in the market.
The union, said to be the largest in the country and is itself not new to filing such complaints against China, accused the country of blocking foreign access to critical renewable energy raw materials; granting subsidies to boost domestic over imported goods; and requiring foreign companies to divulge technology secrets – all of which reportedly result in its unmatched performance in the green industry to the detriment of the United States.
The 5,800-page petition filed with the office of United States Trade Representative also charged China with providing more than $216 billion worth of subsidies to green technology producers – more than twice what the United States spent in the sector and nearly half of the total green stimulus spent worldwide.
The union said the practices it is questioning largely account for the fast-paced growth of China’s green sector in most areas, for example wind and solar.
China’s demand for wind energy equipment reportedly rose tenfold from 2006 to 2009. During the same period, massive subsidies to local producers supposedly displaced United States exports of wind turbines and turbine gears to China which dropped by as much as 81 percent.
Chinese export of solar cells and panels to Europe grew eight times over from 2006 to 2009, a rate significantly faster than the growth in the region’s demands.
China now has 34 percent of Europe’s import market for solar cells and panels over the United States’ 3.7 percent.
But in the United States itself, demand for solar power grew by a healthy 41 percent domestically. Still, panel production barely grew at 7 percent while Chinese imports nearly doubled, the union said.
By law, the White House needs to determine within 45 days whether an investigation is warranted, the decision due on or before October 24. If such an inquiry is begun, the government has 18 months to complete it.
Ernst & Young said this week China overtook the United States for the first time in its quarterly index of the most attractive countries for renewable energy projects.
China needs between 500 billion and 600 billion yuan annually to develop energy conservation and low-carbon technologies, according to a Chinese government report last year.
The world’s fastest-growing major economy may spend about 5 trillion yuan ($738 billion) in the next decade developing cleaner sources of energy to reduce emissions from burning oil and coal, Jiang Bing, head of the National Energy Administration’s planning and development department, said in July.
As of the second quarter this year, the country has attracted $11.5 billion in asset financing for clean-energy technology, more than the combined figure in Europe and the United States, according to Bloomberg New Energy Finance.
“It’s a national priority to reduce our dependence on foreign energy supplies. But if all we do is exchange our dependence on foreign oil for a dependence on Chinese alternative and renewable energy production equipment, we will have traded away our nation’s energy, economic and job security,” Mr. Gerard said.
United States President Barack Obama could face a tough decision on the complaint, given the fragile nature of international climate change negotiations and the upcoming midterm elections.
But a day before the union’s petition, Mr. Obama, in a Labor Day speech, laid out new investments and plans to create jobs amid sustained high unemployment, with an emphasis on a homegrown clean-energy industry.
“I don’t want to see new solar panels or electric cars or advanced batteries manufactured in Europe or Asia. I want to see them made right here in the United States by American workers,» Mr. Obama said.
