EU probes into alleged grants for China solar panel makers
Source: Agencies |
November 9, 2012, Friday
|
Print Edition
Print Edition
THE European Union launched a probe yesterday into alleged state subsidies for Chinese solar panel manufacturers, intensifying the conflict over the multi-billion dollar solar power equipment market that is straining trade ties.
The EU's executive body is already investigating allegations of Chinese makers "dumping" solar panels in overseas markets, meaning deliberately selling products for less abroad than at home or at less than cost.
It also follows a decision by the US to impose duties on solar power products from China, although Brussels says its decisions are completely separate from Washington's.
"Industries in the United States and Europe are becoming increasingly aware there is much more evidence of subsidies in China," said an EU official involved in the investigation. "But this is not a purely adversarial process. We have said to the Chinese government that we are open to finding a solution."
The friction comes at a bad time for both sides with the EU China's biggest trade partner and China the EU's second biggest after the US.
EU Trade Commissioner Karel De Gucht said last month that he believed the two sides would avoid a trade war.
The latest subsidy case has been raised following a complaint by the EU ProSun group of 25 European solar panel firms led by Germany's SolarWorld, the same group that had complained of dumping.
The Chinese government did not immediately respond to the EU decision to go ahead with an investigation but the move comes within a week of China lodging a complaint with the World Trade Organization accusing Italy and Greece of illegally favoring domestic solar panel producers in promoting new solar power installations and warning it could put tariffs on EU exports of the raw material polysilicon.
Chinese companies sold about 21 billion euros (US$27 billion) worth of solar panels and components to the EU in 2011 - about 60 percent of all Chinese exports of the products and some 7 percent of all Chinese exports to the EU.
Chinese producers include Yingli Green Energy, Suntech Power Holdings Co and Trina Solar Ltd. Trina says Chinese solar companies' cost advantages are due to their high production levels, leading to economies of scale, rather than any state subsidy.
While it produces quantities of photovoltaic power generation modules totalling over 1,000 megawatts, many European makers make only smaller volumes of several hundred megawatts, it says.
The EU's executive body is already investigating allegations of Chinese makers "dumping" solar panels in overseas markets, meaning deliberately selling products for less abroad than at home or at less than cost.
It also follows a decision by the US to impose duties on solar power products from China, although Brussels says its decisions are completely separate from Washington's.
"Industries in the United States and Europe are becoming increasingly aware there is much more evidence of subsidies in China," said an EU official involved in the investigation. "But this is not a purely adversarial process. We have said to the Chinese government that we are open to finding a solution."
The friction comes at a bad time for both sides with the EU China's biggest trade partner and China the EU's second biggest after the US.
EU Trade Commissioner Karel De Gucht said last month that he believed the two sides would avoid a trade war.
The latest subsidy case has been raised following a complaint by the EU ProSun group of 25 European solar panel firms led by Germany's SolarWorld, the same group that had complained of dumping.
The Chinese government did not immediately respond to the EU decision to go ahead with an investigation but the move comes within a week of China lodging a complaint with the World Trade Organization accusing Italy and Greece of illegally favoring domestic solar panel producers in promoting new solar power installations and warning it could put tariffs on EU exports of the raw material polysilicon.
Chinese companies sold about 21 billion euros (US$27 billion) worth of solar panels and components to the EU in 2011 - about 60 percent of all Chinese exports of the products and some 7 percent of all Chinese exports to the EU.
Chinese producers include Yingli Green Energy, Suntech Power Holdings Co and Trina Solar Ltd. Trina says Chinese solar companies' cost advantages are due to their high production levels, leading to economies of scale, rather than any state subsidy.
While it produces quantities of photovoltaic power generation modules totalling over 1,000 megawatts, many European makers make only smaller volumes of several hundred megawatts, it says.
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