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May 27, 2013

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Talks with EU today over 'dumping' row

CHINA is to hold talks with European Commission officials today to discuss a trade row over solar panels and wireless equipment, laying the ground for formal negotiations amid concerns of an escalating dispute.

Vice Commerce Minister Zhong Shan will meet European Union Trade Commissioner Karel De Gucht in Brussels to discuss EU investigations into Chinese solar panels and wireless equipment, the Ministry of Commerce said yesterday.

The EU accuses China of pricing its solar panels and mobile telecom devices too cheaply and "dumping" them in Europe, and plans to impose duties on Chinese panel makers.

China denies the allegations and Premier Li Keqiang, who is touring Europe this week, has censured the EU's plans for Chinese solar makers, saying "they harm others without benefiting themselves."

In a speech in Swizerland, Li said the action will hurt European consumers and might encourage trade protectionism, Xinhua news agency reported.

The 27-nation EU imposed anti-dumping duties on Chinese solar panels this month to offset what it said were improper subsidies. The EU also said it would investigate whether Chinese telecom equipment makers received improper support.

"The cases over these two types of products will hurt Chinese industries, business and jobs and also damage the vital interests of European users and consumers," Li was quoted as saying in Zurich. "We express firm opposition."

Trade disputes between China and the EU have risen in recent years as commercial ties between the two deepened. Eighteen of 31 trade investigations conducted by the EU involve China. The fall-out over solar panels, which came to a head this month after the European Commission agreed to impose import duties averaging 47 percent on Chinese panel makers, is the largest to date.

It could affect 21 billion euros (US$26.9 billion) worth of Chinese solar panels sold in Europe - sales that account for 60 percent of China's total solar panel exports and 7 percent of the country's total exports to the EU.

Both sides have negotiated in the past but with no success. China has condemned the proposed EU duties and urges dialogue while tacitly threatening retaliation.

This is not the first time Chinese solar panel makers have fallen foul of foreign regulations. The United States imposed five-year duties as high as 36 percent on China solar products in November.





 

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