The trade war between Chinese photovoltaic companies, and their supposed ‘U.S.’ rivals heats up as the U.S. International Trade Commission votes to continue the Department of Commerce investigation.

I say “supposed ‘U.S.’ rivals” because it turns out the gang leader is owned by a European corporation. Likewise, at least one supposed ‘U.S.’ polysilicon producer is owned by a Chinese corporation.

The U.S. Department of Commerce is set to render a judgment on January 19, 2012.  It could mean that actions will be taken to reduce photovoltaic (PV) products (solar power) coming into the U.S. from China.  China has responded by investigating polysilicon producers in the United States.  Polysilicon is used to make the solar power products.

Hawaii based Hoku International (owned by China’s Tianwei New Energy) announced they will be selling Chinese made photovoltaic modules through a subsidiary called Tianwei Solar USA.  Hoku is about to start up a polysilicon plant in Pocatello, Idaho.  Their silicon buyers are Chinese companies.

So Hoku is set up in a bad position; action by the U.S. government could hurt their new plans to sell Chinese PV products, and retaliation by the Chinese government could hurt their pending polysilicon orders.

But while looking into this mess, I discovered that what’s really going on is an economic war between China and the European Union, with the United States the battlefield.

The U.S. investigation was started by complaints from CASM (Coalition for American Solar Manufacturing).  The lead company in the complaint is SolarWorld Industries Americas.  Their U.S. base of operations is Oregon, but they’re actually a German corporation (SolarWorld) headquartered in Bonn.

CASM’s web site says six other companies operating in the U.S. have joined their organization, but they refuse to name the other members. They also have a interesting slogan (being that SolarWorld is a German company): “Solar technology was invented here [meaning the U.S.], and we intend to keep it here!”

CASM, through the U.S. Congress, recently sent a letter to President Barack Obama (sign by dozens of members of Congress), outlining what they call illegal trade practices by the Chinese government. Some of those practices were employed by the city of Pocatello, in trying to get Hoku to build its long delayed polysilicon factory in Idaho.

One of the claims is that “…cheap or free land from local or provincial governments; extensive tax breaks…”  This is exactly what the city of Pocatello did to win over Hoku.  The land was, in a round about way through huge property tax breaks (equaling the value of the land), given to Hoku.  Union Pacific Railway even got involved.

Union Pacific is going to be the main transporter of the finished polysilicon products.  Recently it was discovered, by Idaho officials, that in the rush (ironic ’cause it’s years behind schedule) to build the factory, that Hoku forgot to build the required double access roads!  Currently the only access to the factory is at the end of a dead end residential street (it was the residents, tired of the traffic jambs, that brought the issue up with officials)!!!  Hoku worked some magic with Union Pacific, who’s agreed to build the access roads.

By the way, one of the individuals credited with bringing Hoku to Pocatello, Gynii Gilliam, is now working at the state level as Idaho’s chief economic development officer.

So, the Europeans (specifically Germans, through CASM) are using the U.S. to launch an economic war with Chinese PV makers, but the charges they’re making against local governments in China are also applicable to local governments in the U.S.!  The pot calling the kettle black.  Unfortunately many ‘mericans (‘specially those working for Hoku, and other polysilicon producers) could actually end up losing their jobs if CASM is successful.

GLOBAL ECONOMIC WAR: CHINESE OWNED HOKU ABOUT TO START OPERATIONS IN IDAHO. WILL U.S. INVESTIGATION INTO CHINESE SOLAR PRODUCTS PUT THE BRAKES ON HOKU’S OPERATIONS?