Obama administration files WTO complaint against China over wind power subsidies

The Obama administration on Wednesday backed the United Steelworkers union in its accusation that China is giving an illegal boost to wind power manufacturers there.

By filing a case with the World Trade Organization, the U.S. is challenging the Asian superpower’s speedy ascent in the clean-tech and renewable energy market.

The complaint concerns a Chinese government incentive program that subsidizes turbine makers. But hundreds of millions of dollars in funds, according to the U.S., are only doled out to companies that use Chinese-made components to the exclusion of parts produced overseas.

The game of favorites claim violates international trade regulations, according to the U.S. case, which echoes a complaint filed by the United Steelworkers with the federal government in September. Officials agreed in October to investigate the claims of Chinese protectionism and discrimination in the clean-tech sector.

The dispute will go before a special World Trade Organization panel if it cannot be resolved through negotiations.

“These subsidies effectively operate as a barrier to U.S. exports to China,” said U.S. Trade Representative Ron Kirk in a statement. “Our decision today … underscores our commitment to ensuring a level playing field with China for American workers and businesses.”

-- Tiffany Hsu

Photo: Workers examine giant blades to be used as part of wind turbines at the Vestas Wind Technology (China) Co. Ltd. factory in Tianjin, China. Credit: Ng Han Guan / Associated Press

Comments

[Melvin Painter]

A better title would be "China tells Obama to get screwed!"

[69monkey69]

what's different from the U.S. giving ethanol subsidies to farmers?

[sam]

This article puts a perspective on our global economy. How each country is trying to have a corner in the market in respects to renewable energy.

[Native Angeleno]

Damn globalization and damn US trade sanctions delaying the installation of wind turbines everywhere on Earth there is an attempt to put them up and replace dirty 20th century energy production with clean green 21st century energy production, and damn the corporate government that puts profiteering ahead of saving what's left of the web of life.

[bobby99]

Gee! The smartest people in the world(Obamie's college professors) got hustled by trusting the Chicomms!! What a suprise!! Kinda like Bill Clinton's Secretary of State Madeline Albright saying "but they lied to us" when the North Koreans took 8 billion of our taxpayer money and used it for nuclear weapons .. Traitors are within.

[Alfred Brock]

It is typical for the Obama administration to make such an empty gesture against such a real threat as the criminal government of Communist China.

[RSweeney]

MissMarple,

If you think that wind, and I suspect, solar are such good deals, why don't YOU invest your own money in them.

Both are available for home use. A mere $50,000 can get you a home wind or solar power plant producing electricity worth over a hundred dollars per year wholesale. Such a value.

Or is it just "other people's money" that you are so free to throw away?

[MissMarple]

YES! Now if we can only get the Republicans to fund an energy bill/stimulus package that will get banks to lend to start up companies that make wind power parts, and assemblers. They killed the bill before.

[Mike]

Hopefully China doesn't cave in to these American hypocrites.