 |
| A factory in China making solar panels. (Photo/CFP) |
Major
Chinese solar panel makers on Thursday protested over punitive tariffs the
European Union plans to levy on Chinese-made photovoltaic (PV) products.
Protests at
more than 40 solar companies broke out as EU member states begin voting on
proposed anti-dumping duties ranging from 37%-68% Friday. The provisional rates
will be effective from June 6 if the proposal is passed.
Representatives
of three solar panel giants, Yingli Green Energy Holdings, Trina Solar and
Canadian Solar, held a press conference Thursday in Beijing, lashing out at the
EU penalties and calling for free trade.
In a joint
statement, the three said any market restrictive measures would hurt China's
solar industry, but would also hinder solar application and development in
Europe and have a major negative impact on the EU's economy and employment.
According
to a research report by German consulting firm Prognos, the punitive duties
could lead to job losses of more than 200,000 in Europe over three years.
Some 1,000
workers gathered at a Yingli factory compound in the city of Baoding in
northern China's Hebei province, holding signs objecting to trade
protectionism. Workers from other solar firms protested across the country.
Meng
Xiangan, deputy director of China Renewable Energy Society, criticized the EU's
move as trade protectionism and believed that China might take retaliatory
measures.
Free trade,
fair competition, opening-up and cooperation are the key prerequisites to the
healthy development of the global PV industry, said Fan Ruifeng, PR director of
Trina Solar.
FAILED
TALKS
The
protests came on the heels of an announcement Wednesday by the China Chamber of
Commerce for Import and Export of Machinery and Electronic Products (CCCIEMEP)
that the first round of negotiations designed to ease the current solar panel
trade spat between China and the EU by agreeing on an export price had failed.
At the EU's
invitation, the chamber sent a negotiation team and put forward pragmatic price
undertaking plans, but the EU side turned them down, refusing to answer
questions from the Chinese side, said Wang Guiqing, deputy chief of the
chamber.
The EU did
not show any sincerity in tackling the problems, leading to a breakdown in
talks, the agency said.
Price
undertaking means exporters raise the export cost of a product to avoid the
possibility of an anti-dumping duty.
European PV
firms have also lodged a separate complaint accusing their Chinese peers of
receiving government subsidies that violate international trade rules.
HEAVY BLOW
The
punitive duties, if imposed, could deal a heavy blow to China's already struggling
PV industry as it relies on the European market, said Zhang Qian, government
relations and business development director at Canadian Solar.
China's PV
exports to Europe slumped 45.1% year on year to US$11.2 billion in 2012, but
the value still accounted for nearly half of the country's total shipments,
according to statistics from the CCCIEMEP.
China's PV
industry has boomed over the past decade, but is now struggling with excess
capacity and weak market demand that has forced some small firms out of
business and even put some giants on the brink of bankruptcy.
Worse
still, leading solar panel maker Wuxi Suntech, a major subsidiary of the New
York-listed Suntech Power based in the eastern Chinese city of Wuxi, declared
bankruptcy in March.
China-made
PV products would completely lose price competitiveness and EU's orders would
be awarded to solar firms from Europe, the United States and even Taiwan, said
Hou Wentao, an analyst with Guotai Junan Securities.
China might
increase domestic solar panel installations to help the industry hedge against
the slumps in exports to Europe, added Hou.
INNOVATION,
NEW MARKET
"We
should change the extensive growth mode and rely more on innovation and
technology rather than on cheap labor and resources in grabbing market share
and profits," said Meng of China Renewable Energy Society.
Some firms
are eyeing emerging markets to help reduce their over-reliance on Europe.
"We will consider exploring the African and Southeast Asian markets in a
bid to reduce the risk posed by the excessive reliance on one single
market," said Zhang of Canadian Solar.
"Yingli
is preparing for the worst. If the punitive duties are levied, we will move our
plant to another country," said Wang Yiyu, Yingli's chief strategy
officer. "But China's PV industry would then be struck down
completely."
Related Articles:
Half of EU members 'oppose China solar tariffs' - New
China's Li visits Berlin amid trade tensions
China, EU to hold talks on trade disputes
EU leaders face up to shale challenge
 |
China's Li
visits Berlin amid trade tensions
|
Related Articles:
Half of EU members 'oppose China solar tariffs' - New
China's Li visits Berlin amid trade tensions
China, EU to hold talks on trade disputes
EU leaders face up to shale challenge
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.