The U.S. Department of Commerce has officially initiated an investigation on the trade practices of Chinese companies in the U.S. market for solar cells and solar modules. As the department communicated on Wednesday (local time), this will involve the examination of potential offences of price dumping as well as subsidies failing to conform to competitive law and the appropriate countervailing measures to be taken.

SolarWorld Industries America Inc., the U.S. subsidiary of SolarWorld AG, had petitioned for the initiation of such investigations with the support of a number of other U.S. manufacturers. The department noted that the participating companies represent the majority of the U.S. production of solar cells and modules on the basis of crystalline silicon in the U.S. as required for the initiation of such proceedings.

“We welcome the initiation of the investigation in the United States. It is all about re-establishing fair competition. We also welcome every cost reduction in the market which makes solar power cheaper and is based on research and innovations. But we have to defend ourselves against artificially low prices that are only possible by Chinese multibillion credits, material subsidies and massive violations of environmental and social standards,” says Dr.-Ing. E. h. Frank Asbeck, Chairman and CEO of SolarWorld AG. “With massive pressure, China pursues an industrial policy strategy at the expense of the U.S. and Europe. These unfair practices must be stopped not only in the interest of the worldwide solar industry, but also for the benefit of the entire growth industry of environmental technologies.”

The U.S. Department of Commerce announced that it will make its determinations in the year 2012.