European firms warn against solar PV trade war

Hundreds of companies from Europe's solar industry have written an open letter to European Trade Commissioner Karel De Gucht, warning that import duties on solar panels from China could have a grave impact on the industry. [File Photo]

Hundreds of companies from across Europe's solar industry have written an open letter to European Trade Commissioner Karel De Gucht warning that import duties on solar panels from China could have a grave impact on the industry, Securities Daily reported.

The European Commission launched anti-dumping and anti-subsidy investigations against Chinese solar manufacturers in September and November last year. Last month, it also ordered customs officials to keep a record of the number of Chinese solar panels being imported in order to allow for retrospective levies to be imposed. By having imports registered, any provisional duties that are imposed can be retroactively applied to March.

The European Commission will make a provisional decision on anti-dumping tariffs by this June, and the anti-subsidy investigation will take 9 to 10 months to complete.

The recent protest lodged by European solar enterprises will exert pressure on the European Union and ultimately delay any decision by the European Commission with regard to reconsidering tariff rates on imported solar panels from China. It is unlikely, however, that the EC will abandon its investigations, said Qian Jing, brand director of Jinko Solar based in Jiangxi Province.

The protest may spark the EU consultations with China on the solar panel issue in order to reach a mutually beneficial conclusion, Qian said.

According to PV industry insiders, the pressure exerted by companies from Europe's solar industry could lead to a better outcome, such as the levying of symbolic duties on imported Chinese solar products or requesting lower Chinese tariffs on imports from the EU. The consensus from a wide range of PV company insiders across Europe is that the imposition of punitive trade duties would be universally disadvantageous and would likely drive up the cost of 70 to 80 percent of solar panels made in Europe, leading to a decline in profits and demand.

Qian, however, believes that the European market will continue to be important for Chinese PV firms. "Jinko Solar will continue to expand its European market, whatever the result of the EU's investigations," he said.

Yuan Quan, marketing manager of Phono Solar, concurred: "We have adjusted distribution of the global market and expect that the shipment volume in Europe will account for about 40 percent of the total this year."