Exportsof solar panels and solar cells have been a contentious issues between the US and China

  The US is to impose sharply higher tariffs on solar cells imported fromChina, which it says will offset the subsidies China pays its manufacturers.

  The Department of Commerce said itwill impose tariffs of between 14.78% to 15.97% on Chinese firms.

  This compares with an earlier level of between 2.9% and 4.73% it announcedin March.

  China has criticised the move saying it will hurt trade relations and willprovoke trade friction.

  "The US isprovoking trade friction in the new energy sector, and sending a negativesignal to the world that stirs global trade protectionism and obstructs thesector's development," Shen Danyang, spokesman for China'sCommerce Ministry was quoted as saying by the Reuters news agency.

Growing tensions

  The export of solar cells and solar panels has been a contentious issuebetween the US and China.

  The US-based manufacturers of these products have alleged that governmentsubsidies provided to Chinese firms have helped them cut their prices and floodthe market with cheap products.

  In its latest report, the Department of Commerce concluded that Chinesefirms were selling products in the US at rates below fair value, a practiceknow as "dumping".

  It said it would levy anti-dumping duties against these firms.

  However, the department added that it would issue the orders for theanti-subsidy tariffs and anti-dumping duties once the US International TradeCommission (ITC) affirmed that these practices were hurting US firms.

  The ITC is expected to announce its decision on the matter by 23 November.

  Timothy Brightbill, a legal representative for SolarWorld IndustriesAmericas, one of the firms that has been the most vocal opponent of Chinesecompanies, said it would keep up the pressure on authorities to implementstrict measures.

  "In our view, all Chinese cells and all Chinese modules are dumpedand subsidised," he said.