China group urges tougher restrictions on solar material imports
HONG KONG (REUTERS) - Chinese manufacturers are pressuring Beijing to take further measures to curb imports of raw materials used to make solar panels to help revive an ailing green-energy sector, an industry official said on Thursday.
Beijing last week slapped hefty preliminary anti-dumping duties on imports of US and South Korean solar-grade polysilicon, which analysts say have been dominating the Chinese market with pricing and quality advantages.
But any further restrictions would offer limited help to China's struggling polysilicon sector partly because more than 60 per cent of the country's polysilicon imports are conducted via so-called processing trade, which is excluded from any anti-dumping moves, industry specialists say.
Under the trade, foreign companies like Germany's Wacker Chemie AG and South Korea's OCI Co Ltd export polysilicon to bonded zones in China to enjoy official tax benefits and then use the polysilicon to make products like solar wafer, cells and panels for exports to other countries.