US New Energy Industry Survey to Promote China's Industry Solidarity

The US “301 Survey” on renewable energy launched by the US renewable energy industry has brought the Chinese industry together in an unprecedented way.

"It is necessary to organize the leaders of several industries, gather human, material and financial resources, and lead by the association to visit various states in the United States, visit associations, chambers of commerce, and members of the Senate. If the new energy industry is to develop, it cannot be separated by window paper. At the third countermeasures conference held in a few days, more and more companies have made such requests.

Qin Haiyan, secretary general of the Wind Energy Professional Committee of the China Renewable Energy Society, said that since the United Steelworkers’ Federation filed a complaint on September 9, the relevant domestic associations began to find a legal basis for each of these allegations. . "Now it seems that many of these allegations lack a factual basis." After the summary, the relevant evidence will support the next intergovernmental consultation.

Although the industry generally believes that the investigation is unlikely to bring a lawsuit to the WTO, the impact of this trade entanglement on China's renewable energy sector still causes widespread concern.

Chen Hang, chairman of the US Meifu Energy Co., Ltd., told this reporter that at the current sensitive political point, Chinese enterprises must finally obtain a favorable situation for themselves. If they enter the US market smoothly, they must follow the US approach and pass politics. The pressure of lobbying will put aside the misunderstanding.

Political card at special time
Although China's clean energy subsidy policy has been the subject of this survey, China is not the only country that has introduced clean energy support policies in all countries that develop renewable energy.

"In fact, the US wind power and solar industry incentive policies have been introduced earlier than any other country, and the intensity is even greater." Qin Haiyan said.

According to current US laws, the current US renewable energy industry incentives include the Renewable Energy Generation Quota System (RPS), Production Tax Preferential Subsidy (PTC), and Investment Tax Preferential Subsidy (ITC). Within the manufacturing sector, there is also a Equipment Manufacturer Concession (MITC).

Among them, PTC and ITC give up to 30% tax concessions or cash rebates. As of the beginning of 2010, 13 solar heating and 169 photovoltaic power generation projects in the United States received a total of 81 million US dollars in subsidies, accounting for 3% of the total subsidy. In addition, 45 wind power projects received a total of approximately $2.4 billion in subsidies, accounting for 88% of the total subsidy.

Relevant officials of the National Energy Administration told this reporter that although the subsidies are various and the amount of subsidies is huge, the US new energy subsidy policy has not been implemented very well. "The installed capacity of wind power in the United States is a jagged and irregular development with the fluctuation of policies."

Since fiscal and tax incentives such as PTC and ITC were abolished in 1999, 2001 and 2003 respectively, during the abolition period of this year, the installed capacity of wind power in the United States has experienced a sharp decline in varying degrees.

Subsequently, due to the extension of these incentive policies and the addition of new cash rebate terms, US wind power has grown rapidly for three consecutive years. However, in the first half of 2010, due to the uncertainty of the PTC policy extension, the installed capacity in the United States decreased by 71% compared with the same period in 2009.

"Although the United States is very keen to vigorously develop new energy industries, the uncertainty of its own preferential policies has affected the development of the industry. However, at the node of the mid-term elections, the US government must pass these pressures out, so China will become An imaginary enemy," said the National Energy Administration official.

Chen Hang said that due to the limitations of the US's own legal system, its wind power installed capacity is always developing rapidly when the policy is good. If the policy is not good, it will fall sharply, and the internal resistance of the industry development is too great. However, due to the better overall cooperation ability of market policies and the rapid development of China, China has caused some concerns in the US industry.

After the US Steel Workers Federation filed a complaint, more than 180 US congressmen signed and handed over to Obama a strongly open letter expressing the concern that the US market will become dependent on Chinese manufacturing after the new energy eventually replaces conventional energy. .

Solve problems in the US
"Because this incident has a special political background, when it is resolved, we must also adopt political means to solve the problem in the United States." A wind power company executive told this reporter.

"At such a time, the industry should also gather human, material and financial resources, and the relevant associations will take the lead to visit the US states. Visiting relevant American associations, chambers of commerce and members of the Senate. China is a market that cannot be ignored." Tao Gang, vice president of Sharp Wind Power, said.

According to Tao Gang, at present, 11 of the world's 15 largest wind turbine manufacturers have already set up factories in the United States, and have not yet entered the United States, almost all of them are from China.

"Because of the particularity of the fan, the transportation cost is very large. Therefore, if the product enters the US market, it must set up a processing plant in the United States and produce it nearby. According to 1 MW of wind power, it can produce 3 manufacturing jobs and 1.5 indirect jobs. It is estimated that if Huarui sets up a factory in the United States, it can accommodate the direct employment of thousands of Americans. If it expands into the entire industrial chain, its pulling effect is even greater." Tao Gang estimates.

However, due to the lack of communication channels, what the United States sees more is the tax incentives that foreign companies enjoy in setting up factories in the United States.

In Chen Hang's view, as the world's largest wind power market, China's current market share in the US is still zero. Therefore, once Article 301 is truly resorted to to the WTO, it will have a huge impact on China's related industries.

“Now Chinese companies are not accustomed to conducting government public relations in the United States. Many European companies negotiate directly with the governor when they enter the United States, and several states open a few factories. In this way, they can obtain direct support within the US government. But domestic companies are When entering the US market, due to cost and many other considerations, I always used to use Chinese resources and methods." Chen Hang said.

Chinese companies have repeatedly suffered setbacks in the process of going global. The new energy sector does not involve national security and has many benefits for sustainable development. It was originally the best way for Chinese companies to seek overseas. The encounter investigation also sounded the alarm for China's renewable energy companies to go overseas.

"China's wind power industry always wants to go to the world. Now that the battlefield has moved to the United States, it should be solved by the United States." Chen Hang said.

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