EU close to brokering deal on Chinese solar imports

Want China Times, Staff Reporter 2013-07-27

A Yingli Solar factory in Tianjin. (File photo/Xinhua)

China and the European Union have reportedly reached a consensus on minimum prices and an annual quota for Chinese solar panel imports to the EU, which may help China avoid the hefty 47% anti-dumping duty set to take effect in August. The EU may also be able thereby to avoid a resulting trade war, according to China's Global Times and our Chinese-language sister paper Want Daily.

The EU imposed a 11.8% interim anti-dumping duty on Chinese solar panels from June 6. The duty will be raised to 47% if the two sides can not resolve the trade dispute before Aug. 6. China has been negotiating with the EU on the matter while also launching a retaliatory anti-dumping probe on wine imports from the EU region.

Representatives led by EU Commissioner for Trade Karel De Gucht and China's Minister of Commerce Gao Hucheng have been in talks and are reportedly close to agree a minimum price of €0.55 (US$0.73) per watt of capacity for Chinese solar panels. The panels were formerly sold in the EU for €0.40 (US$0.53) per watt, far lower than the €0.58 (US$0.77) per watt that is the lowest price that European manufacturers can offer.

The China Chamber of Commerce for Import and Export of Machinery and Electronic Products allegedly sent a letter to 66 Chinese solar panel makers and said the EU was aiming for a minimum price of €0.57 (US$0.76). The EU also reportedly hopes to set the price higher than the productions costs in Asian countries.

A quota for Chinese solar panel imports is also set to be discussed by the Chinese and EU representatives. "Negotiations are ongoing at the highest level toward an amicable solution," said EU trade spokesman John Clancy, according to the Global Times.

China sold over €21 billion (US$27 billion) worth of solar panels in the EU in 2011. The Alliance for Affordable Solar Energy said the anti-dumping duty has caused the prices of solar panels in Europe to rise and reduced demands. The service sector was also influenced significantly and led to increasing unemployment, it said.

References:

Gao Hucheng　　高虎城

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