Chinese stocks improve on back of trade resolution hopes
Following discussions between Chinese and US government officials there is growing suspicion that Chinese officials have put forward an offer to US counterparts in an effort to settle the ongoing trade dispute that sees both countries accuse the other of dumping material or product in order to gain unfair advantage.
The tit-for-tat responses has seen Chinese cells and modules hit with punitive tariffs and US polysilicon supplies hit with similar measures from China. The disputes have been spearheaded by German based SolarWorld and have spread to other regions.
The recent escalation of the issue came about when US tightened its rules to include Taiwanese sources prompting China to close polysilicon imports from September. Bloomberg's Bureau of National Affairsis reporting that a letter has been received by Commerce Secretary Penny Pritzker from lawyers representing the Chinese government and the contents propose a resolution to the dispute.
Industry observers are suggesting that China would not have made the move without feeling there was some success. US companies like First Solar, SunPower and SolarWorld USA would not benefit from any settlement and the Chinese would expect some resistance leading industry analysts to feel the Chinese must have a fair indication of success.
Whatever the outcome the speculation has seen Chinese solar company shares rise up to 5% on the back of the news.
