China Renews Trade Measures on Polysilicon Imports
Beijing, China – China's State Council Tariff Commission has announced the extension of antidumping duties on solar-grade polysilicon imports from the United States and South Korea, alongside countervailing duties on US polysilicon, for an additional five years. The renewed measures are effective starting January 14, 2026. This decision follows comprehensive expiry reviews conducted by China's Ministry of Commerce (MOFCOM).
Background and Review Findings
The Ministry of Commerce initiated expiry reviews in January 2025, prompted by requests from China's domestic polysilicon industry, including companies like Sichuan Yongxiang Polysilicon. The reviews aimed to assess whether the termination of existing duties would lead to a continuation or recurrence of dumping and subsidization, and subsequent injury to China's solar-grade polysilicon industry.
MOFCOM's findings indicated that 'if the anti-dumping measures were terminated, dumping of solar-grade polysilicon from the two countries could continue or resume, and the resulting injury to China's domestic industry could persist or reoccur.' Similarly, for countervailing duties, the ministry concluded that 'if the countervailing measures were terminated, subsidization of US-origin solar-grade polysilicon could continue or reoccur, and the resulting injury to China's domestic industry could persist.'
Duty Rates and Affected Products
The extended anti-dumping duty rates for US companies will remain between 53.3 percent and 57 percent. For South Korean producers, the rates range from 4.4 percent to 113.8 percent, varying by company. Additionally, countervailing duties on US solar-grade polysilicon will continue at rates between 0 percent and 2.1 percent.
The measures specifically target solar-grade polysilicon, which is a crucial raw material for manufacturing crystalline silicon photovoltaic cells. This includes:
- Rod-shaped polycrystalline silicon products
- Block-shaped polycrystalline silicon products
- Granular polycrystalline silicon products
- Directionally solidified polycrystalline silicon ingots
Historical Context and Industry Impact
China first imposed anti-dumping duties on solar-grade polysilicon imports from the US and South Korea in January 2014. These duties were subsequently extended in January 2020 for another five-year period, making this the second extension. The continuation of these duties underscores China's commitment to protecting its domestic solar-grade polysilicon industry from what it perceives as unfair trade practices. Importers of solar-grade polysilicon from the US and South Korea are now required to pay the corresponding duties to China's customs, levied based on the value of imported goods.
5 Comments
Manolo Noriega
The protection of a vital industry like solar-grade polysilicon is a priority for any nation, especially one with significant investments in green energy. Still, extending these duties for another five years creates significant uncertainty for international businesses and could lead to retaliatory actions.
Fuerza
The MOFCOM findings suggest legitimate concerns about dumping, justifying the extension of duties to safeguard local businesses. However, this ongoing trade friction makes the global solar supply chain less predictable and potentially more expensive for consumers worldwide.
Ongania
China's desire to secure its critical raw material supply is understandable, especially given past trade disputes. Yet, such long-term tariffs could hinder the collaborative development needed for global clean energy transitions.
Manolo Noriega
While it's logical for China to protect its domestic polysilicon industry from dumping, these extended duties could lead to higher costs for global solar manufacturers. It's a delicate balance between national interest and international trade.
Fuerza
Given the evidence presented by MOFCOM, China is acting within its rights to prevent injury to its domestic industry. However, these duties might also be viewed as a strategic move to consolidate China's already dominant position in the solar sector, potentially limiting competition.