China criticizes US probe on clean energy sector

China’s energy chief criticized US probe into Chinese subsidy on its clean energy.

According to People's Daily Online, Mr. Zhang Guobao, deputy director of China National Development and Reform Commission and head of the National Energy Bureau, said that the wording of the petition on Section 301 of the US trade law is ambiguous and much of the data it uses is incorrect and even deliberately made up. He said that the probe will backfire on itself by exposing more of the huge subsidies to its own clean energy sector.

Mr. Zhang also denied the US allegation that China has unfairly favored Chinese companies over foreign funded companies in wind power bids. He said that "China has no discriminatory rules on clean energy equipment manufacturers."

The energy chief said that in sharp contrast to China's open attitude, the American Recovery and Reinvestment Act introduced in 2009 allows the United States to subsidize its renewable energy, energy efficient and smart grid businesses, and the renewable energy industry alone has received a massive subsidy of US$ 25.2 billion. Furthermore, the US Office of Energy Efficiency and Renewable Energy introduced a six month tentative rule on August 16th 2010 that requires subsidized solar power projects to use only US made wafers.

China has exported only three wind turbines to the United States so far with total power-generating capacity of less than 10,000 kW. However, US based GE exported wind turbines with a total capacity of 80,000 kW to China in 2005. The figure surged to 340,000 kW in 2009 which is an increase of more than 400 percent. Wind turbines exported by GE to China over the past five years have a total capacity of over 1 million kW.

He said that "I have always held a sincere attitude towards the exchanges with the United States particularly in the renewable energy and new energy sector because the energy issue is an issue faced by all human beings."