EU launches solar power trade probe
Print Edition
EUROPEAN Union regulators have opened an investigation into China’s solar power panel industry, the European Commission said yesterday.
The action is in response to accusations that Chinese mainland companies are dodging import duties by exporting via Taiwan and Malaysia.
Following a complaint by European firms, “the commission has concluded that sufficient evidence exists to justify the initiation of an investigation,” the commission said in the EU’s official journal.
The complaint threatens to spark a new flare-up in a long-running row on a trade issue that Brussels and Beijing only recently managed to damp down. The investigation will try to establish whether Taiwanese and Malaysian companies are true producers of solar power products or as European manufacturers allege, fronts for Chinese mainland producers.
If found at fault, the commission could impose heavy anti-dumping duties on the Chinese products concerned, in a repeat of a bitter dispute between the two giant trading partners
Industry lobby group EU ProSun argues that China exports solar modules and cells via Taiwan and Malaysia and passes them off as locally made to avoid EU levies.
“Such circumvention is customs fraud and must be stopped,” said Milan Nitzschke, president of EU ProSun in a statement welcoming the probe.
EU ProSun has been a fierce critic of Chinese manufacturers who it says have largely destroyed Europe’s solar panel industry.
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