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JUL 27 2012

China’s solar companies warn of trade war with European Union

  • Economic Times, ET Bureau / Hyderabad
  • Created: Fri 27th JUL 2012

China’s solar companies warned of a trade war on Thursday, calling on the Chinese government to strike back against an anti-dumping complaint filed by European competitors.

Raising stakes in continuing disputes within the industry, companies led by Germany's SolarWorld on Wednesday asked the European Union to investigate claims that Chinese rivals had been selling their products below market value in Europe. SolarWorld confirmed on Thursday the submission by the so-called EU ProSun group, which comprises 25 members in Germany, Spain, Italy and other EU countries. German solar module maker Sovello is also part of the initiative.

A similar initiative was spearheaded by SolarWorld in the United States, leading the world's largest economy to impose in May duties of about 31 percent on solar panel imports from China. If the EU were to follow the precedent of the US and launch an anti-dumping investigation on Chinese solar products, the Chinese solar industry would suffer a fatal blow, Yingli Solar's chief strategy officer, Wang Yiyu, said.

The investigation would also trigger a wholescale trade war between China and the EU, which would cause huge losses to both parties, he said at a briefing by leading Chinese solar companies Yingli, SunTech, Trina and Canadian Solar.

We call on the Chinese government to take all necessary and resolute measures to protect the legitimate interests of the Chinese solar industry.

Western solar companies have been at odds with their Chinese counterparts for years, alleging that they receive lavish credit lines to offer modules at cheaper prices, while European players struggle to refinance.

Tags

China United States Europe

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