Sunday, June 26, 2022 | 2 a.m.
View more of the Sun's opinion section
President Joe Biden has talked a lot about “Made in America” and creating 10 million clean-energy jobs. However, he’s made a serious error for America’s solar manufacturing industry that poses grave consequences for the nation’s energy future, including a greater dependence on Chinese solar panels.
China accounts for roughly 70% of global solar panel production. Much of that stems from the massive subsidies Beijing provides to its state-owned manufacturers. China also “dumps” solar panels in the world market at below the cost of production in an effort to put U.S. solar companies out of business.
Beijing’s tactics have worked. Between 2010 and 2016, America’s solar industry almost disappeared under a flood of Chinese solar cells. It wasn’t until the Trump administration-imposed tariffs on Chinese solar products in 2018 that America’s solar industry began to regain its footing as assembly of solar panels relocated to the United States.
Since then, U.S. solar companies have invested in new production and new workers. Last year, American-assembled solar cells accounted for 18% of new U.S. installations — an all-time high.
Despite this, America’s solar companies are still struggling. In response, the Department of Commerce recently initiated an investigation into Chinese solar companies operating in Malaysia, Thailand, Vietnam and Cambodia to illegally avoid U.S. tariffs.
Clearly, China is intent on dominating global solar production. But inexplicably, Biden issued a “Solar Emergency Declaration” that gives China a free pass to continue its illegal trade activities for two years. As NBC News reported, “nobody will be punished” — regardless of what Commerce finds.
It appears Biden has been listening to the Solar Energy Industries Association (SEIA), a trade group that claims tariffs hinder U.S. solar installations. That’s nonsense, though, since the U.S. installed 23.6 Gigawatts of solar power last year — almost half of all new generating capacity.
Significantly, SEIA represents Chinese solar producers, including companies that use forced labor in Xinjiang, Western China. In fact, the American Prospect reports that some of SEIA’s leading members are the “same Chinese-owned companies that are implicated not only in the investigation of illegal tariff evasion, but in the use of slave labor to produce solar components.”
Biden has also authorized the Defense Production Act (DPA) to accelerate domestic solar production. However, until Congress explicitly appropriates additional funding, the Biden administration can’t use the DPA for solar projects.
What Biden has done is signal that China can ship more solar panels to the U.S. by any means necessary. And he’s sabotaged the Commerce Department’s investigation into Chinese solar manufacturers illegally circumventing U.S. tariffs. Regardless of what the Commerce Department determines, no Chinese company can be punished since the president’s declaration gives them a free pass for the next 24 months.
The COVID pandemic has already demonstrated the pitfalls of America’s over-reliance on Chinese imports. Allowing China to overtake America’s solar industry jeopardizes America’s energy security. Biden should swiftly rescind his declaration and hold Chinese companies accountable for willfully undercutting America’s solar manufacturers.
Michael Stumo is CEO of the Coalition for a Prosperous America.
