The Obama Administration has said that it will launch an investigating into Chinese policies and practices affecting trade and investment in clean energy technologies.
The decision, announced yesterday, has been taken in response to a petition filed by the United Steel Workers (USW) with respect to their acts, policies and practices affecting trade and investment in green technologies.
The petition alleges that China employs a wide range of WTO-inconsistent policies that protect and unfairly support its domestic producers of wind and solar energy products, advanced batteries and energy-efficient vehicles, among other products, as China seeks to become the dominant global supplier of these products.
According to the petition, these policies include export restraints, prohibited subsidies, discrimination against foreign companies and imported goods, technology transfer requirements, and domestic subsidies causing serious prejudice to US interests.
The petition further alleges that China's policies have caused the annual US trade deficit in green-technology goods with China to increase substantially since it joined the WTO, making the nation the top contributor to the US global trade deficit in the sector.
The complaint has been filed in response to a petition filed by the United Steelworkers (USW) on September 9.
"The USW has raised issues covering an array of Chinese government policies affecting trade and investment in green technologies," the US Trade Representative Ron Kirk said.
"This is an important sector for the US. Green technology will be an engine for the jobs of the future, and this administration is committed to ensuring a level-playing-field for American workers, businesses and green technology entrepreneurs," he said.
"In light of the large number of allegations and the extensive documentation accompanying them, I have asked my staff to utilise the 90-day period allowed by statute to thoroughly examine and verify the USW's claims," he said.
"For those allegations that are supported by sufficient evidence and that can effectively be addressed through WTO dispute settlement, we will vigorously pursue the enforcement of our rights through WTO litigation," Kirk said.
Under the Section 301 statute (an established law or rule), the US Trade Representative may request consultations with the foreign country concerned at the time when investigation is initiated.
The statute also provides, however, that the US Trade Representative, after consulting with the petitioner, may delay up to 90 days any request for consultations for the purpose of verifying or improving the petition.
The House Majority Leader Steny Hoyer (MD) welcomed the USTR decision in this regard.
"This action demonstrates Democrats' commitment to protect American workers and creating jobs right here at home, even while Republicans vote to let companies send jobs overseas," he said.
