EU ratifies 48% tariff on Chinese solar

Discussion in 'China' started by Armand2REP, Jun 8, 2013.

  1. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    EU ratifies anti-dumping tariffs against China's PV products

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    The European Commission, the executive body of the European Union, has resolved to levy an 11.8% provisional anti-dumping tariff on Chinese photovoltaic products from June 6 to Aug 6. The tariff will jump to 47.6% after the grace period ends.

    The resolution will deal a major blow to China's photovoltaic industry, which shipped €21 billion (US$27.5 billion) in solar panels and related parts to the EU in 2011. Exports account for 70% of the total output of China's photovoltaic industry. The anti-dumping and anti-subsidy investigation by the EU against Chinese solar products represents the largest trade friction between China and Europe, as well as the largest trade dispute worldwide, in terms of value. The move will all but crumble Chinese photovoltaic firms, which have already suffered crippling declines in revenue and profit.

    Shanghai New Energy Industry Association notes that the 47.6% tariff is much higher than 20% acceptable to most Chinese firms in the line.

    Chu Xiaohua, chairman of Canadian Solar, however, notes that despite the high tariff, it seems Chinese products will still maintain an edge in the European market for the time being, although second- and third-tier firms may bite the dust.

    Mi Yue, standing deputy chairman of Shanghai New Energy Industry Association, said that the EU deliberately set the initial anti-dumping tax at 11.8%, mainly in response to repeated concerns from the Chinese government. On the evening of June 3, China's premier Li Keqiang called Jose Manuel Barroso, chairman of the EU Commission, urging a resolution of the dispute via dialogue and negotiation instead of a trade war, in which there can be no winner.

    The case originated in July 2012, when German photovoltaic firm Solarworld filed a petition with the EU Commission demanding an anti-dumping investigation against Chinese PV products. The firm alleged that European PV firms would all go bankrupt should Brussels fail to take action.

    On May 22, China and EU announced the failure to reach an agreement in talks on a price pledge. EU representatives had rejected the price pledge proposal as put forth by Chinese representatives. After 12-15 months of initial investigations, the EU finally rendered an initial verdict.

    The move follows the 18.32%-249.96% anti-dumping tariff and 14.78%-15.97% anti-subsidy tariff imposed by the US on Chinese photovoltaic products at the end of 2012, in response to a petition filed by seven US solar cell firms and Germany's SolarWorld.

    A senior US lawyer said that the EU move is understandable, in view of the overcapacity of the photovoltaic industry and the Chinese government's heavy subsidies in the domestic PV industry.

    EU ratifies anti-dumping tariffs against China's PV products|Markets|Business|WantChinaTimes.com
     
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  3. amoy

    amoy Senior Member Senior Member

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    In response http://africa.chinadaily.com.cn/business/2013-06/05/content_16573113.htm the next step shall be towards EU Auto

    China EU trade disputes: Red wine CCTV News - CNTV English
     
    Last edited: Jun 8, 2013
  4. amoy

    amoy Senior Member Senior Member

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    Furthermore China fuels EU trade dispute with talk of luxury car tax - Telegraph

    On the verge of a trade war? Let's see who'd blink first :shocked:
     
  5. trackwhack

    trackwhack Tihar Jail Banned

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    @amoy.

    China sells yo EU more than it buys from there. Also China sells to EU lab our intensive products while it itself buys niche/high tech products. Good luck with the trade war.

    BTW, if not European luxury cars then what? Japanese? American? Cause there sure ain't a Chinese or paki luxury car that I've heard of.

    Remember wine and cars are bought by individuals who can take the additional hit on duty. They will just pay more. While companies buy solar panels and if it makes more sense to buy domestically with these duties then they will.
     
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  6. amoy

    amoy Senior Member Senior Member

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    @trackwhack Any idea abt asymmetrical warfare? the retaliation doesnt hv to b an eye for eye tooth for tooth one. the pain is to b felt by different sectors or EU members but they'll hv to pressure EU as a whole to weigh possible consequences. Robust Germany is opposed to the penalty then Merkel has to tell lousy peers like France and Italy to back off.

    Sent from my 5910 using Tapatalk 2
     
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  7. Ray

    Ray The Chairman Defence Professionals Moderator

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    So the trade wars are beginning?
     
  8. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    The only thing China could really hit us with is cancelled orders for Airbus, but then the US slapped the same tariffs so they don't have a choice. Come August, China's solar industry is dead.
     
  9. badguy2000

    badguy2000 Respected Member Senior Member

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    well, France trys to tie the whole EU on trade-war machine against CHina.....and CHina carry pricise counter-attack against France with wine,which 70% wines are imported from France.
     
  10. amoy

    amoy Senior Member Senior Member

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    be careful abt what u wish for. China is playing her cards one bye one, first wine then automobile, and Airbus definetely in the queue!

    remember last year China threatened to cancel Airbus orders amid the dispute over EU carbon tax scheme? finally EU had to kowtow to almighty China.

    China this time has rolled sleeves up to save the solar industry in billions.

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  11. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    You can slap all the tariffs on wine you want. It won't stop the rich from buying it, in fact it will make it even more premium.
     
    Sameet Pattnaik and wrigsted like this.
  12. Ray

    Ray The Chairman Defence Professionals Moderator

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    The Chinese love status and keeping up with the Joneses.

    They have the money and they will show off.

    They will buy what they want so long as they can show off.

    Unless ofcourse the CCP warns them that it will be a one way ticket to the Laogai!
     
  13. trackwhack

    trackwhack Tihar Jail Banned

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    @amoy

    You are being as arrogant as your CCP masters. China is still a poor country. You can't take on Japan EU and US on in a trade war and win. But hey don't let that stop you from trying. I'd only be too happy to see you fail.
     
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  14. trackwhack

    trackwhack Tihar Jail Banned

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    Same with the luxury cars but he won't get it.
     
  15. amoy

    amoy Senior Member Senior Member

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    Arrogant? u or me? Chinese at least are fighting to save an industry that contributes to thousands of jobs and billion dollars of export.

    okay pls wait in your self defeated mindset for our failure.


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    Last edited by a moderator: May 10, 2015
  16. trackwhack

    trackwhack Tihar Jail Banned

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    Nothing self defeatist. We play by the rules so no ones beating us. You are not so you are getting whipped. Now you can choose to take those lashes and learn to behave or keep baring your teeth like an ungrateful dog and not get fed. Your choice. Let's see who wisens up.
     
  17. amoy

    amoy Senior Member Senior Member

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    EU to lodge case against Chinese steel tube duties | South China Morning Post

     
  18. t_co

    t_co Senior Member Senior Member

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    Or we can whip them back and make them behave. The world is not about rules, it's about power, and learning to use one's power to increase one's power relative to others.
     
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  19. bose

    bose Senior Member Senior Member

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    China neither have power nor the will to enforce…
     
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  20. xingapore

    xingapore Tihar Jail Banned

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    I think this time is different. China has been intimidating in the SCS and ECS. so pretty sure that the chinese will retaliate this time. I think its a good thing for the chinese as there is little down side for them.
     
  21. bose

    bose Senior Member Senior Member

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    Any retaliation from China will invite counter punch from others... China badly needs EU & US exports to fuel its economic growth...
     

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