Europe Shines New Light on Chinese Solar Investigation

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- The European Union (E.U.) has intensified its probe into alleged unfair solar trading practices in Europe by Chinese solar companies backed by their government.

The European Commission (E.C.) is following up an earlier anti-dumping probe by this week launching an anti-subsidy ("countervailing duty") investigation into imports of solar panels and their key components originating in China.

In September this year following complaints made by EU ProSun, an industry association representing around 20 solar companies, the E.C. launched its largest ever anti-dumping investigation over allegations that Chinese solar panel firms were dumping solar panels and components into the European market at below cost prices. For additional information, see September 12, 2012, article - European Anti-Dumping Probe into Chinese Solar Firms.

China is the world's largest producer of solar panels. Approximately 65% of all solar panels are produced in China and the European Union is China's main export market for solar panels, accounting for around 80% of all Chinese export sales.

"EU ProSun, an industry association, claimed in its complaint lodged on 26 September 2012 that solar panels and their key components imported from China benefit from unfair government subsidies," the E.C. stated. "In terms of value of imports affected, this is the most significant anti-subsidy complaint the European Commission has received so far: in 2011, China exported solar panels and their key components worth around €21 billion ($26.9 billion) to the E.U.. The investigation will take 13 months in total. According to trade defence rules it is possible to impose provisional anti-subsidy duties within 9 months, provided there is sufficient prima facie evidence of subsidisation."

Milan Nitzschke, President of EU ProSun, said: "The European Commission has made a landmark decision today to scrutinize the many ways that central and local government bodies of the People's Republic of China dish out illegal subsidies to their solar manufacturers."

He added: "It is significant that this ray of hope from Brussels for the survival of the European solar industry comes one day after the Obama administration sent a clear signal that the U.S. will no longer tolerate unfair solar competition from China. Following the mountain of evidence from the U.S. investigation that China is guilty of granting massive illegal subsidies, we are confident that the E.U. will quickly impose substantial countervailing duties of its own."

China intends to take the fight to Europe and has filed a complaint with the World Trade Organization (WTO) against subsidies provided by some European governments to solar panel makers. For additional information, see November 8, 2012, article - China Files WTO Dispute Against EU on Solar Power Industry.

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