NEW YORK (TheStreet) -- Yingli Green Energy (YGE) was gaining 4.4% to $3.36 Monday after World Trade Organization judges ruled U.S. tariffs on Chinese solar modules, steel products, and other exports violate global trade rules.
The WTO ruled that the U.S. tariffs are inconsistent with the 1994 Marrakech accord which deals with subsidies and countervailing duties according to Reuters. In the summary of the report, the panel of three judges recommended "that the United States bring its measures into conformity with its obligations" under the agreement.
The U.S. tariffs were first imposed on Chinese solar module exports in 2012. The government recently announced new preliminary tariffs to close a loophole related to using non-Chinese cells.
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TheStreet Ratings team rates YINGLI GREEN ENERGY HLDGS CO as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate YINGLI GREEN ENERGY HLDGS CO (YGE) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."