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The federal Department of Commerce announced today that it will investigate Chinese trade practices based on accusations made by an Oregon-led group of American solar manufacturers.

Hillsboro-based on Oct. 19 filed petitions with the International Trade Commission and the Department of Commerce alleging that Chinese manufacturers of solar products are illegally dumping silicon solar cells into the U.S. market. The trade commission immediately launched an investigation, and the Commerce Department has now decided to also conduct an intensive, year-long investigation.

Two executives from SolarWorld Industries of America, the largest U.S. producer of crystalline silicon solar cells and panels, testified on Tuesday before the trade commission.

Gordon Brisner, president, and Kevin Kilkelly, president of U.S. sales, represented the Coalition for American Solar Manufacturing, which includes six other unnamed manufacturers of the crystalline silicon solar technology.

The petitions also assert that Chinese manufacturers are receiving massive subsidies from the Chinese government, such as contract awards, financing breaks and supply chain payments.

Brisner presented evidence that Chinese exports to the U.S. rose more than 350 percent from 2008 to 2010 and continue to rise. Exports from China in July exceeded those from all of 2010, Brisner said.

The coalition contends that the flood of cheap Chinese products is the primary cause for a 40 percent decline in world market prices over the past year. The results, they claim, are thousands of jobs lost and seven U.S. manufacturers closing or downsizing operations.

鈥淲e just think that as the largest and most experienced solar manufacturer left in the Americas, it is incumbent on us to lead the effort to defend domestic manufacturing,鈥� said SolarWorld spokesman Ben Santarris. 鈥淲e have the resources to counter what China is attempting to do to competition from the U.S. and to mount a challenge to (China’s) illegal predation on the U.S. solar industry.鈥�

To counter the surge, the coalition hopes the federal government will impose retroactive duties on Chinese exports.