Trade war warning as EU solar probe begins
By Richard Fu |
September 7, 2012, Friday
|
Print Edition
Print Edition
China yesterday called on the European Union to halt trade protectionism after the opening of an anti-dumping investigation into Chinese solar products.
The EU investigation, which stems from a complaint by a European industry group that Chinese equipment is entering Europe at below market value, could trigger a trade war and affect the development of the world's solar industry, it was claimed.
China sold solar panels and components worth around 21 billion euros (US$26.5 billion) to the 27-nation bloc last year, its largest market.
In Beijing, Ministry of Commerce spokesman Shen Danyang urged the EU to withdraw any protectionist measures.
"Restricting China's solar panel products will not only hurt the interests of both Chinese and European industry, it will also wreck the healthy development of the global solar and clean energy sector," Shen said.
He urged the European Union to "seriously consider China's stance and suggestions and resolve the trade frictions in solar photovoltaic products through negotiations."
The European industry group, led by Germany's SolarWorld and comprising members in Germany, Italy, Spain and other EU countries, launched a similar initiative in the United States that led the Obama administration imposing preliminary duties on Chinese imports in May.
China's solar firms warned in July of a trade war, calling on their government to strike back against the impending investigation.
Chinese producers include Yingli Green Energy, Suntech Power Holdings Co Ltd, Trina Solar Ltd and Canadian Solar Inc. They say the dumping allegations are unfounded and that it is open markets and increased competition that makes solar energy affordable in the EU.
"We are fully transparent with our funding sources and cost structure," Miao Liansheng, chairman and CEO of Hebei Province-based Yingli, said yesterday.
He said that his firm will closely cooperate with the European Commission in order to prove that the conditions for imposition of punitive tariffs are not fulfilled.
"Regardless of misleding claims, we remain focused on producing cometitive, high-quality products based on our investments in research and development," he said.
The commission will examine whether dumping is taking place, whether it is damaging EU industry and whether duties would harm EU economic interests.
German Chancellor Angela Merkel, during a visit to China last week, said she preferred a negotiated settlement to the dispute. Her comments frustrated Europe's solar panel producers.
Western solar firms have alleged that Chinese companies receive lavish credit lines to offer modules at lower prices.
However, some European solar companies say Europe should welcome Chinese imports because they make solar power more affordable and are essential for the 27-member bloc to achieve its goal of having 20 percent of energy from renewables by 2020, Reuters reported.
Their alliance, AFASE, called on the commission to uphold free trade to secure jobs and support industry growth. It said there was a growing danger of a trade war between Europe and China.
SolarWorld's alliance, EU ProSun, says panel prices dropped by 75 percent from 2008 to 2011 as the Chinese ramped up capacity from almost zero in 2004 until it more than covered global demand for panels last year. It argues prices will still fall, albeit more steadily, if duties are set.
The EU investigation, which stems from a complaint by a European industry group that Chinese equipment is entering Europe at below market value, could trigger a trade war and affect the development of the world's solar industry, it was claimed.
China sold solar panels and components worth around 21 billion euros (US$26.5 billion) to the 27-nation bloc last year, its largest market.
In Beijing, Ministry of Commerce spokesman Shen Danyang urged the EU to withdraw any protectionist measures.
"Restricting China's solar panel products will not only hurt the interests of both Chinese and European industry, it will also wreck the healthy development of the global solar and clean energy sector," Shen said.
He urged the European Union to "seriously consider China's stance and suggestions and resolve the trade frictions in solar photovoltaic products through negotiations."
The European industry group, led by Germany's SolarWorld and comprising members in Germany, Italy, Spain and other EU countries, launched a similar initiative in the United States that led the Obama administration imposing preliminary duties on Chinese imports in May.
China's solar firms warned in July of a trade war, calling on their government to strike back against the impending investigation.
Chinese producers include Yingli Green Energy, Suntech Power Holdings Co Ltd, Trina Solar Ltd and Canadian Solar Inc. They say the dumping allegations are unfounded and that it is open markets and increased competition that makes solar energy affordable in the EU.
"We are fully transparent with our funding sources and cost structure," Miao Liansheng, chairman and CEO of Hebei Province-based Yingli, said yesterday.
He said that his firm will closely cooperate with the European Commission in order to prove that the conditions for imposition of punitive tariffs are not fulfilled.
"Regardless of misleding claims, we remain focused on producing cometitive, high-quality products based on our investments in research and development," he said.
The commission will examine whether dumping is taking place, whether it is damaging EU industry and whether duties would harm EU economic interests.
German Chancellor Angela Merkel, during a visit to China last week, said she preferred a negotiated settlement to the dispute. Her comments frustrated Europe's solar panel producers.
Western solar firms have alleged that Chinese companies receive lavish credit lines to offer modules at lower prices.
However, some European solar companies say Europe should welcome Chinese imports because they make solar power more affordable and are essential for the 27-member bloc to achieve its goal of having 20 percent of energy from renewables by 2020, Reuters reported.
Their alliance, AFASE, called on the commission to uphold free trade to secure jobs and support industry growth. It said there was a growing danger of a trade war between Europe and China.
SolarWorld's alliance, EU ProSun, says panel prices dropped by 75 percent from 2008 to 2011 as the Chinese ramped up capacity from almost zero in 2004 until it more than covered global demand for panels last year. It argues prices will still fall, albeit more steadily, if duties are set.
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