US to probe Chinese, Vietnamese wind tower importations

The U.S. Commerce Department is investigating importation of more than $100 million worth of wind energy towers from China and Vietnam.

This could lead to steep import duties. 

The Commerce Department is already investigating charges that Chinese solar panel makers engage in unfair trade practices and will issue a preliminary decision on duties next month.

The department said China was alleged to undercut U.S. wind tower prices by nearly 214 percent and Vietnam by 141 to 143 percent.

Some Chinese makers of wind towers said on Thursday they oppose the charge.

"We are talking to the China Commerce of Ministry about this," said Wang Debao, a vice-director at Chengxi Shipyard Co, whose wind tower business made up nearly 10 percent of its annual revenue which exceeded $1 billion last year.

Other Chinese wind tower makers Titan Wind Energy (Suzhou) Co and Shanghai Taisheng Wind Power Equipment also expressed concerns, saying any anti-dumping duties by the U.S. could hurt prospects in a growing market.

U.S. producers also want additional countervailing duties on wind towers from China to offset alleged government subsidies, despite a recent U.S. court ruling that struck down the use of such duties against "non-market economies" like China.

A separate U.S. government agency, the International Trade Commission, held a hearing to probe whether U.S companies have been materially harmed or threatened by the imports. The panel will vote next month on whether there is enough evidence of harm for the case to proceed.

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Tags: wind towers, importations, probe