U.S.-China Wind Power Evil



Sino-US trade friction disputes have further escalated. On Wednesday, the United States sued China to the World Trade Organization (WTO) for providing illegal subsidies for wind power equipment manufacturers. In response, the person in charge of the Department of Treaty and Law of the Ministry of Commerce of China pointedly pointed out yesterday that China’s measures for the development of wind power are in conformity with the WTO rules.

At the same time, Bai Ming, deputy director of the International Market Research Department of the Institute of International Trade and Economic Cooperation of the Ministry of Commerce, interviewed by the New Express reporter pointed out that the current development of the wind power industry in China is still at the stage of development of the infant industry, and according to the provisions of the WTO, it can be accepted in developing countries. Certainly protected, the U.S. accusations are groundless.

The Chinese side denied that the development of wind power measures was illegal. On the 22nd, the United States took a first step in initiating a trade lawsuit in response to the WTO's consultation request under the dispute resolution mechanism on wind power related measures in China. U.S. trade officials believe that the Chinese government’s subsidies require wind power manufacturers to use domestically produced spare parts only, in violation of WTO rules.

Yesterday, the person in charge of the Treaty and Law Department of the Ministry of Commerce stated that all countries in the world are actively developing new energy sources to cope with climate change. "China's measures for the development of wind energy are conducive to energy conservation, emission reduction and environmental protection. It is an important means to achieve sustainable development and is in line with the WTO rules."

At the same time, the person in charge pointed out that the Chinese side is highly concerned about the US side's filing of the WTO dispute settlement procedure. China will handle it according to the WTO dispute settlement rules and retain the corresponding rights.

It is understood that the rapid development of China's wind power industry has been ranked first in the world by the tenth in five years. Li Junfeng, deputy director of the Energy Research Institute of the National Development and Reform Commission, predicts that the newly installed capacity of wind power will remain at a level of 15 to 20 million kilowatts per year in the next decade. By 2015, China's installed wind power capacity will be approximately 90 million to 150 million kilowatts. At present, China's large-scale wind power equipment manufacturers include Xinjiang Goldwind Technology [22.30-4.29%], Huarui Wind Power and Dongfang Electric [33.48-5.37%]. Wind turbine manufacturers such as GE and UTC are also optimistic about the development of China's wind power market [0.77 1.32%] and are eagerly competing with China's rapidly growing market.

After seeking consultations with the WTO, the United States initiated the process of resolving differences through negotiations within 60 days. If the above efforts fail, the United States may apply to the WTO Dispute Resolution Group for hearings.

Wind power is a childish industry that can properly protect the US from accusations. Our experts believe that the wind power industry is a childish industry and can be properly protected.

Bai Ming said that first of all, wind power equipment is a kind of new energy and clean energy, which is in line with the global low-carbon economic development trend. For our country, compared with thermal power, hydropower, etc., wind power is still in the initial development stage, and is the future direction of development. Therefore, in the early stages of development, the government needs certain measures to support it.

WTO also has regulations for the protection of infant industries in developing countries. It is understood that the WTO defines the protection of childish industries as follows: Allowing a country to establish a new industry or to protect imports that have not yet been competitive since it was established Tariffs or import licenses are used for protection.

Second, Bai Ming believes that any country will tend to favor its own goods. "Even in the United States, which has a relatively large degree of trade freedom, the United States passed a clause that prioritized the purchase of U.S. domestic goods earlier this year, not to mention the developing countries. Therefore, this is an international practice. In the same situation, any country will Give priority to the use of domestic things.” Bai Ming believes that China’s support for this emerging industry, wind power, will benefit all humanity.

Childcare protection of childish industries means that an industry is in the early stages of its development, and its foundation and competitiveness are weak, but it has potential comparative advantages. If appropriate protective policies are adopted, industries that will play an important role in the development of the country’s economy will be affected. Countries need to adopt transitional protection policies.

Experts analyze emerging industry frictions or more about the U.S. side’s policy of supporting China’s wind power industry policy in accessing the WTO. Bai Ming pointed out that China’s current trade frictions are developing toward emerging industries. “The trade frictions faced by high value-added industries will increase in the future. Enterprises should make corresponding psychological preparations."

Bai Ming stated that there were many cases of "double opposition" in trade protection cases, and fewer cases involved trade subsidies for strategic emerging industries. Therefore, there is a view that the higher the industry is, the less trade frictions it will face. However, Bai Ming pointed out that the higher the export products go, the greater the trade friction may be. "China's major export markets are developed countries in Europe and North America. In the past, exports of low-end products were complementary to local ones. Exports of high-tech products and high value-added products may have more fierce competition with European and American countries."

Therefore, high-tech industries and emerging industries should be fully prepared for ideological development. “Don’t be afraid to improve technology, but also look up the road and see possible obstacles. At the same time, before spending time on the market, spend more time and cost to investigate local The market makes it even more difficult to enter the market.”

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