After receiving a complaint from a number of European solar companies, the European Commission has started investigations regarding dumping of solar panels from Chinese manufacturers. The Commission will have 15 months from the opening of the investigation to impose any duties.
The European Commission has announced that it has started an investigation into suspected dumping of solar panels by Chinese producers, a move that could set off a trade war between the European Union and China.
The investigation, led by German SolarWorld, comes about from a complaint by a group of European solar companies, and regards one of the biggest import sectors ever targeted.
According to the group, made up of members in Germany, Italy, Spain and other EU countries, Chinese solar firms have been selling panels below market value in Europe.
China’s solar firms warned in July of a trade war, calling on Beijing to strike back against the impending investigation by the European Union. Chinese producers include Yingli Green Energy, Suntech Power Holdings Co Ltd., Trina Solar Ltd. and Canadian Solar Inc.
China sold about GBP 16.64 billion in solar panels and components to the European Union in 2011 – equivalent to 60% of all Chinese exports of the product.
The European Union imported goods from China for a total of EUR 292 billion in 2011. Less than 1% of imports of Chinese products are subject to trade defence duties.
The US imposed duties on solar panel imports from China in May after a similar initiative led by SolarWorld in the country.
The European Commission will examine whether dumping is taking place, whether it is damaging EU industry and whether duties would harm the EU’s economic interests.
Western solar firms have been at odds with their Chinese counterparts for years, alleging that they receive lavish credit lines to offer modules at cheaper pricing.
German solar company Q-Cells became the most prominent EU victim of an increasingly competitive market, filing for insolvency in April.
Some European solar companies, such as those that install panels, however, say Europe should welcome Chinese imports because they make solar power more affordable and are essential for the 27-member bloc to achieve its goal of having 20% of energy from renewables by 2020.
The Commission, which has within 15 months of the opening of the investigation to impose any duties, will send questionnaires to the Chinese exporters as well as to EU producers and importers and make a recommendation to EU members.