You might have noticed in the news recently that three U.S. photovoltaic companies have filed for bankruptcy. One of the chief things mentioned in each filing was competition stemming from cheap photovoltaic cells and modules being manufactured in China.

Oregon Sen. Ron Wyden (D) recently sent President Barak Obama a letter asking that he use existing tools to protect the U.S. market from unfair competition from the Chinese photovoltaic industry.

“The domestic solar industry, and specifically Oregon producers, see a tremendous opportunity for growth as the market for solar panels expands,” Wyden, chair of the Senate Finance Committee’s Subcommittee on Trade, said via email. “Such prospects are undermined by the unfair trade practices employed by China. Chinese producers of solar panels enjoy lavish subsidies and other trade distorting benefits from the Chinese government that undercut American manufacturers and the jobs they support."

Basically, China has thrown tons of government money into its domestic photovoltaic manufacturing companies. For instance, in 2010 the country’s bank invested some $30 billion into photovoltaic manufacturing. That impact’s already being felt.

China’s photovoltaics are manufactured with significant government support and with lower labor costs. Between lower prices and higher production levels, Chinese modules produced a glut of photovoltaic modules in the first half of 2011. The effect was precipitous price drops across the international industry.

“Imports of Chinese solar panels increased 1,593 percent between 2006 and 2010. We need only look at the bankruptcies of major American innovators and producers of solar panels to see the material injury these imports appear to be inflicting on our domestic industry. Unless the U.S. takes aggressive action to combat the import surge of Chinese solar panels and the unfair trade practices that China employs, our efforts to facilitate the creation of the new jobs our economy needs will be substantially undermined,” Wyden wrote in his letter to Obama.

That growth is set to continue in 2011, according to Wyden.

“Advanced producers—whether they are American, Japanese or European—are losing market share in almost every growing market to Chinese producers. Chinese imports of solar panels are surging and are on pace to increase 240 percent this year, compared to 2010,” he said. “I am convinced that our view of energy independence does not entail substituting America’s reliance on Middle Eastern oil with a dependence on Chinese solar panels. Without strong enforcement of U.S. trade statutes, however, that is just what will happen."

Wyden asked Obama to show leadership on the issue.

“The American solar industry is facing unparalleled challenges, and without the leadership of your administration, this industry may disappear, leaving behind additional workers without employment. Letting that happen is unacceptable,” he said.

If Obama does not act on the letter, Wyden may take actions to secure the industry.

“As for specific action, I am still considering options and my decision, as I laid out in the letter, will be informed by what the President is willing to do and what domestic producers think will be most helpful,” Wyden said.