The Chinese Ministry of Commerce said on Friday that it would conduct anti-dumping investigations on polysilicon produced in the United States and South Korea. Polysilicon is the raw material for the production of solar energy products. This incident highlights the tension between major solar manufacturers. On Friday, the Chinese Ministry of Commerce issued two statements on the website to conduct anti-dumping and countervailing investigations on US-produced polysilicon and conduct anti-dumping investigations on Korean polysilicon. The statement quoted evidence from Chinese solar companies. These companies include GCL-Poly, Saiwei, and Daquan. Earlier, Chinese officials warned that if the United States imposed penalties on Chinese solar companies, China would impose punitive tariffs on US-produced polysilicon. Earlier this year, the United States imposed two new tariffs on Chinese-made solar equipment, with a total tax rate of 35%, citing China’s unfair support for the industry and illegal dumping in the US market. Chinese solar manufacturers such as Suntech, Yingli, and Canadian company Artes have criticized the new US tariffs, saying that rising costs will threaten industry growth. If the Chinese government takes punitive measures against the import of US and South Korea polysilicon, it will probably affect the world's largest producer, Hemlock, the United States, and OCI, the largest producer in South Korea. American business Hughes Electronic Materials (MEMC) may also be affected. Although it has not yet evolved into a trade war, both China and the United States have verbally criticized each other's trade policies. The United States says that China is taking retaliatory measures against reasonable charges against the United States. China said that the White House only attacked China in the election year. Felix Fok, an analyst at research firm Jil Asia, said that if China imposes import tariffs on polysilicon, downstream wafer producers will face difficulties. Fokker believes that the Chinese government has taken relevant measures because some local companies have been in trouble and the Chinese solar industry has suffered losses for more than a year. For many years, Western solar companies have been accusing Chinese competitors of obtaining a large amount of loan support, so they can offer products at cheaper prices. Chinese solar companies account for more than 60% of the world market. China's large PV companies account for 20% of their total sales in the United States. Representatives of the US solar installation industry have called for both the United States and China to avoid import tariffs, saying that any party's tariffs will lead to a reduction in jobs and weaken the competitiveness of solar energy relative to fossil energy.

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