Description

Since early 2018, the US – China ‘trade war’ has increased tariffs on a wide range of Chinese products, including solar panels. The tension between the US and China in the solar sector, if left unchecked, will not only harm the bilateral relationship between the two trade powers but also impede climate change mitigation as higher costs will slow down the deployment of solar energy.

This presentation examines China’s rapid development of solar industry and highlights the problem of over-capacity, which constitutes a major irritant to the US administration. An examination of the World Trade Organization (WTO) rules suggests that China is likely to prevail in legal action against the US, however, the speaker argues that China should also take the opportunity to solve overcapacity and over-reliance on solar export markets in a limited number of countries.

Two options merit consideration: one is to explore domestic market potential by increasing consumption and demand for solar energy so as to absorb manufacturing capacity. The other is to strengthen ties with countries along the Belt and Road Initiative (BRI) in solar trade and investment, which can significantly contribute to ‘greening’ the BRI and global climate change mitigation.

About The Speaker

FANG Meng holds a post-doctoral fellowship at APCEL, NUS since August 2018. Her research interests are in climate change governance, international environmental law, WTO law and energy law. She completed her PhD at the Chinese University of Hong Kong. Her doctoral thesis explored the interaction between renewable energy measures, climate change mitigation and the WTO law. She also holds a LLM in international law from University College London, a Bachelor of Laws and a Bachelor of Management from Chongqing University, China.