The Sun Also Rises

Today’s NY Times article (“Solar Rises in Malaysia During Trade Wars Over Panels”) covers a recent solar panel manufacturing boom in Malaysia, due in no small part to the U.S. trade remedies against Chinese solar panels.  The Commerce Department is mulling imposing tariffs on all solar panels “assembled” in China, regardless of original sources of their key components (solar cells).  Previously, the U.S. trade remedies against Chinese solar panels were limited mostly to those solar panels made of made in China solar cells (in accordance with some rules of origin akin to the last substantial transformation rule).  Under the proposed rule, however, if Chinese solar panels contains Taiwanese or Malaysian solar cells, they may still be subject to the U.S. trade remedies against Chinese solar panels.  Paula Stern, the former Chairwoman of the International Trade Commission (1984-1986), observed that the new rule would eventually harm the U.S. domestic solar industry.  Would this series of developments demonstrate, for good or ill, an ever-diminishing efficacy of conventional trade remedies, especially antidumping duties, in the era of global value chains?