China said Friday it has launched a probe into US subsidies for renewable energy companies, in apparent retaliation after the United States took action against Chinese solar cell makers.
The Chinese investigation would cover solar, wind and hydropower products and equipment and six projects in Massachusetts, Ohio, Washington, New Jersey and California, the commerce ministry said in a statement.
It would investigate complaints that US "support policies and subsidies" for the renewable energy industry breached World Trade Organization rules and created "obstacles" for the development of China's domestic sector.
The investigation will start Friday and last until May 25 but can be extended until August 25 if necessary.
The move comes after the US Commerce Department said this month it would investigate complaints by US SolarWorld Industries America that China was selling solar cells and panels in the US market at below the cost of production.
The firm's president, Gordon Brinser, has accused China of having "illegally subsidised" solar cells and panels and dumping them onto the US market "at artificially low prices" that threaten to "decimate" US competitors.
"China has a plan for our market: To gut it, and own it," Brinser said at a news conference last month.
The company had previously accused China of improperly subsidising its solar sector as part of a no-holds-barred commercial battle for supremacy over an industry experts estimate to be worth trillions of dollars in the future.
