WASHINGTON, D.C. — Continuing his work to combat unfair Chinese trade practices, U.S. Sen. Sherrod Brown (D-OH) today filed legislation to provide additional resources to the Office of the United States Trade Representative (USTR) to help level the playing field for American solar producers. American solar producers are facing an expected 240 percent increase in the import of Chinese solar panels this year, according to the U.S. International Trade Commission (ITC). Imports of Chinese solar panels increased 1,593 percent between 2006 and 2010.  

“China’s gains in the solar market are coming at the expense of Ohio producers. Ohio manufacturers can compete with anyone on a level playing field—but by subsidizing its solar industry and hoarding rare earths, China isn’t competing—it’s cheating,” Brown said. “The Office of the U.S. Trade Representative is one of our first lines of defense for manufacturers when it comes to combating the Chinese’s governments numerous and flagrant trade law violations. This legislation would provide additional support to USTR to combat these illegal trade practices and help our manufacturers succeed.”

The Solar Energy Industries Association has named Ohio as among the top states for solar manufacturing capacity in the country. Brown’s legislation, filed as an amendment to the Commerce-Justice-Science Appropriations (CJS) bill, would provide an additional $5 million to the USTR to investigate and combat China’s documented violations of international trade law, including the subsidization of its solar industry and its hoarding of rare earth materials. The CJS Appropriations bill provides funding for the U.S. Departments of Commerce, Justice and other related agencies, including the Office of the U.S. Trade Representative.

Last month, Brown sent a letter to USTR Amb. Ron Kirk urging him to protect Ohio manufacturers by initiating a World Trade Organization (WTO) case on China’s hoarding of rare earth materials. Dozens of vital green technologies – solar panels, wind turbines, advanced batteries, energy efficient lighting, and more – depend on critical raw materials derived from rare earth elements and other minerals. China produces more than 90 percent of the world’s supply of these minerals, and it uses a variety of means to restrict exports of these minerals to users in the U.S. and other countries. These restrictions raise prices for manufacturers outside of China, lower prices for those within the country, and create a powerful incentive to shift production to China in order to secure necessary supplies. These export restrictions are a clear violation of China’s WTO commitments.

Last week, the Senate passed the largest bipartisan jobs legislation in this session of Congress—a bill to crack down on Chinese currency manipulation, authored by Brown. The Chinese government has long practiced currency manipulation by intentionally devaluing its own currency against the United States dollar. This results in artificially expensive American imports to China, and artificially cheap Chinese imports to the United States. This puts Ohio and American manufacturers at a serious disadvantage, and makes it more difficult for American companies to compete against Chinese companies. The Currency Exchange Rate Oversight Reform Act of 2011, which would give the Obama Administration stronger authority to address currency manipulation and misalignment, cleared the Senate by a vote of 63 to 35. The bill must now be voted on by the House of Representatives.

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