Domestic Industry Points to Changed Treasury Department Conclusions on Currency Issues in Review of Solar CVD

As we reported here, in an administrative review for a U.S. countervailing duty order for imports of crystalline silicon photovoltaic cells from China during 2019, the domestic industry alleged that Chinese currency undervaluation in this period constitutes a countervailable subsidy. The Department of Commerce (DOC) asked the Treasury Department for input on this issue, and Treasury responded that while the renminbi (RMB) was undervalued during the relevant period, China did not undertake “government action on the exchange rate” that contributed to the undervaluation of the RMB and the undervaluation was due to other factors.

In a submission on the Treasury response, the domestic industry has now provided "rebuttal factual information." In this regard, the industry noted that while Treasury had stated that it "assesses that in 2019 China did not undertake ‘government action on the exchange rate’ that contributed to the undervaluation of the {renminbi (“RMB”)},” in a previous case Treasury had determined that “China undertook ‘government action on the exchange rate’ that contributed to the undervaluation of the RMB in 2019, with this determination taking into consideration the government’s degree of transparency regarding actions that could alter the exchange rate.”

Thus, the industry stated, "Treasury’s assessment covering 2019 in the current review is a reversal of its previous assessment covering 2019 in the Twist Ties from the People’s Republic of China proceeding." In support, the industry provided Treasury’s response to a supplemental questionnaire from the DOC in the Twist Ties case.

We will continue to monitor the developments in this proceeding. Despite its previous findings on the issue, there is no indication that Treasury is likely to change the position it took in the solar CVD review.