US―China Green Trade Conflict and Implications for Low-Carbon Energy Transition: The Solar Energy Trade Dispute

Abstract

Purpose - The purpose of this paper is to analyze the causes of Sino-U.S. solar PV trade disputes by adopting research, comparative research, and case study. It also proposes relevant resolutions over Sino-U.S. solar trade conflicts and the implications for low-carbon energy transition.
 Design/Methodology/Approach - Based on green trade protectionism and comparative advantage theory, this paper combines Chinese solar products export flows to the U.S. with cases of solar trade disputes from 2011 to 2022 to analyze the causes of Sino-U.S. solar trade conflict. Thus, from the perspective of international trade law, WTO reform on the relevant renewable energy agreements, international carbon border tax regime, and a bilateral clean agreement or EGA negotiations, it purposes the resolution of Sino-U.S. solar trade conflict.
 Findings - This paper studies factors leading to the Sino-U.S. solar trade conflict, which is mainly a bilateral trade imbalance, the game of interest groups within the US, non-standard support policies for Chinese solar energy industry, and geopolitical and national green energy security. There is no doubt that trade disputes had had a larger negative impact on Sino-U.S. solar trade flows from 2011 to 2019. Meanwhile, the solar PV trade policies of the US affected the global supply chain of solar PV products, thus hindering the progress of low-carbon energy transition.
 Research Implications - In the management of this paper, this study has important practical significance for the healthy and sustainable development of solar PV trade and achieving low-carbon energy transition for both countries. It can also provide references to solar energy trade disputes among other countries in a broader sense, and propose relevant recommendations for South Korea’s solar energy.