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China's trade war against the U.S. photovoltaic industry was hit hard

If you want to know how to make a trade war in the opening of the incumbent president Donald? Trump did not, then you can be president of the solar industry and Thor supplier REC Silicon ASA? (Tore Torvund) support memtech talk.

Bloomberg (Bloomberg) 27 reported that in 2011, the United States to increase tariffs on imports from China's solar panels, and a year later, China's imports of polysilicon on the u.s.. Polysilicon is an important component of solar panels. The production of polycrystalline silicon in Norway's REC ASA in Washington, Silicon (Moses Lake), Moldova West Lake Butte Montana (Butte) is provided with the factory, the company and other American manufacturers have therefore suffered heavy losses.

When it comes to an interview with Towand accepted in Beijing, in the past 3 years, as the orders plummeted, the number of American companies to reduce staff 350 people. The remedy would be to spend $1 billion on a joint venture in Yulin, central China, employing 650 workers.

"We have to create productivity in China because we can't get access to China in the United States," he said." Towand said, "this (trade war) is the beginning of the United states. When a country moves, another country will act differently. This is generally the case."

This example shows us Trump threatened during the campaign to impose additional tariffs on imported goods or China will allow the United States to suffer. The United States does not consider solar panels to impose additional tariffs to the benefits, without considering any Trump may make similar moves, then the result is Chinese, the United States and the solar industry will suffer damage.

Towand described in detail how the trade war against the solar energy industry has hurt the interests of REC Silicon and China and the United states. The following are some problems:

Q: what impact did this trade war have on REC Silicon?

A: now, 80% of polysilicon production capacity in china. We are headquartered in the United States, but most of the business is entirely dependent on the ability to enter the Chinese market. So, the start of the trade war means that American manufacturers to lose 80% of the world market. If we want to sell polysilicon to China, we have to pay more than 57% of the tariff. Now China's polysilicon price is $17 per kilogram. If Chinese customers want to buy polysilicon from the United States, then we can only set the price at $11, because Chinese buyers have to pay more than 57% of the tariff. In practical terms, this is impossible.

Q: How did you deal with the trade war?

A: we have a joint venture with a Chinese company. Our shares accounted for 49%, accounting for more than 51%, so you can set up a factory in china. REC has a unique technology, in order to joint venture with us, Chinese companies pay me $200 million, they want to build a factory with this technology. The plant will begin operations in the third quarter of this year. We will employ 600 to 650 workers there. We arranged for 20 American employees to manage the project in china. There are 50 Chinese workers in our two factories in the United States, where they will be trained for one year.

Q: what is the impact on the United States and China?

A: because the United States and China launched a trade war on solar energy, so in the United States, no one will invest in polysilicon industry. Our company used to be the largest private enterprise in West Lake. We only reduce production capacity. We can't afford to pay so much tax. The Obama administration focused on solving the problem, because they wanted to promote clean energy use, want to get more cheap solar panels. In the United States, the price of solar panels is higher than anywhere else. A trade war may hurt American jobs, but in the end it will hurt China's employment. Now, in order to avoid paying taxes to the United States, many of China's solar companies began to invest in Vietnam and Malaysia, because only the solar cells made in China need to pay tariffs. This is detrimental to China's employment. The industry has also been implicated as a result of a trade war that triggered competition for alternative energy. We have to be competitive enough to compete with coal and natural gas, which means our prices are low enough.

Q: what do you think of Donald? Trump said?

The best thing to do is to stop the U.S. - China trade war on solar energy. Most of the parties will gradually see, if this situation continues to develop, will be more or less damage to the U.S. solar industry. The start of the trade war on China and the u.s.. If the new government is looking for high paying jobs, then they will be able to embrace it. I hope Sichuan realized that employment and work is more important than ideology.

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