Governors seek expedited DOC solar trade investigation as firms linked to slave labor halt imports

Energy
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The Xinjiang region of China produces approximately half of the world's solar-grade polysilicon material, which is used in virtually all solar modules. | MariaGodfrida/Pixabay

On May 16, 19 governors sent a letter to President Joe Biden and Secretary of Commerce Gina Riamondo seeking an expedited review of the Auxin Solar complaint over alleged Chinese “tariff dodging.”

The main lobbyist group pushing for a stoppage of the investigation, Solar Energy Industries Association (SEIA), is tied to Chinese companies that use slave labor, a recent report from The American Prospect said. SEIA’s members include American subsidies of Chinese producers such as JinkoSolar, JA Solar, Trina Solar, BYD and LONGi Solar. JinkoSolar has had a seat on SEIA's board of directors since 2019.

“If you look at SEIA, if they have to advocate on one side or the other, they always benefit Chinese solar companies,” Nick Iacovella, of the Coalition for a Prosperous America, said in the report.

“SEIA is an agent of LONGi and Jinko,” Mike Stumo said in the report. “In other times it would be subject to FARA.” Stumo referred to the Foreign Agents Registration Act, a disclosure law for foreign-government lobbyists.

Opponents worry about solar production in Xinjiang because of the region's alleged ties to slave labor, the report said. Several Chinese firms in SEIA have publicly admitted to using forced labor.

Small solar businesses claim that Chinese companies have not shipped products to them, which has led to suspicion that the Chinese firms are slowing or stopping trade to make the U.S. Commerce Department back down in its investigation.

LONGi, JinkoSolar, Canadian Solar and Trina Solar all have had imports blocked over such concerns, the report said. Polysilicon, a key component in solar panels, is listed by the Department of Labor as a product that is made using slave labor. 

On June 23, the Uyghur Forced Labor Prevention Act will go into effect and prohibit the import of goods produced in the Xinjiang region of China, the report said.

Ethnic Uyghurs forced into labor in that region are responsible for production of 45% of the world’s solar-grade polysilicon material, which is used in 95% of all solar modules, a recent Globe Banner report said.

"SEIA has made the climate cost the centerpiece of their campaign,” the Prospect report said. “But it’s worth questioning whether climate and trade goals have to necessarily conflict in this case. If Chinese solar panels are dirtier to produce, some of the climate benefit is muted. If they’re made with forced labor, it shocks the conscience. And if they are wantonly violating trade laws, then the share of Chinese dominance will grow, adding a host of problems, not just for the economy, but for the climate as well."