China to suspend polysilicon imports from September the 1st
China's Ministry of Commerce and General Administration of Customs have posted a statement on their website stating that China will cease importing processed polysilicon from September the 1st. While officially the statement says the decision is a reaction to increased imports from South Korea, US and Europe, the move is likely to be seen as an escalation of trade battles currently in play.
With news the US government has given China more time to seek a solution to trade impositions placed on China solar cells and modules, stopping polysilicon imports could make any resolution difficult.
There could be a sigh of relief in some Chinese quarters as the move will boost local component and tool manufacturers in the polysilicon value chain, as well as the polysilicon suppliers themselves. With government support for the solar industry in China dwindling some companies were finding it hard to compete.
China is still working its way through the overcapacity that saw the global industry slow down under the weight of its own success. The current move by the government needs to tread a fine line of keeping local markets happy while maintaining positive relations with its international trade partners.
