EU ratifies 48% tariff on Chinese solar

Armand2REP

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



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
 

amoy

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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 has decided to begin an anti-dumping and anti-subsidy investigation into wines imported from the European Union, the Ministry of Commerce (MOC) said on Wednesday.

The country's wine producers filed a petition to the ministry last year, calling for probes into the EU's dumping of wine that received unfair government subsidies and was damaging China's wine industry, according to the ministry.

China EU trade disputes: Red wine CCTV News - CNTV English
Meanwhile, European wine producers increased their share of the Chinese market to over 14 percent last year, from not even 5 percent in 2008.
 
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amoy

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

The Chinese authorities, which on Wednesday launched a trade inquiry into sales of European wine, have received a complaint from an unknown person or persons over subsidies to cars imported from the EU with engines of 2 litres or larger, the European car industry association (ACEA) said on Friday, citing information from its Beijing office and legal counsel.
Any investigation of EU luxury car imports could signal a shift in stance by China, whose inquiry into EU wine imports was viewed as targeting southern European states such as France and Italy that back duties on Chinese solar panels, while largely sparing northern countries such as Germany that oppose them.
China imported 572,000 passenger cars from Europe and 10,100 commercial vehicles last year, according to consultancy LMC Automotive, though it could not provide a breakdown of models or manufacturers.

ACEA put the figure at almost half a million vehicles and said the majority would likely be impacted by any trade duty imposed by China. It did not breakdown the figures either.

While many European carmakers manufacture vehicles in China, in part to avoid existing duties, their top-end ranges are usually still built at home.

Imposing more duties would be a blow, as the rapidly expanding ranks of wealthy Chinese are a key market for upscale European cars. Around half of all Mercedes S-Class flagship limousines, for example, are sold to Chinese customers.
On the verge of a trade war? Let's see who'd blink first :shocked:
 

trackwhack

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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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amoy

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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.

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Ray

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So the trade wars are beginning?
 

Armand2REP

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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.
 

badguy2000

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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.
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.
 

amoy

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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.
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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Armand2REP

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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.
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.
 

Ray

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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!
 

trackwhack

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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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amoy

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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.
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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trackwhack

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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.
 

amoy

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

The European Union plans to lodge a case with the World Trade Organisation against Chinese duties on specialised steel tubes, EU sources said yesterday.

The move, which will open another front in a rapidly escalating trade conflict with Beijing, will allow the EU to join a related complaint filed by Japan against Chinese duties in December.

The EU complaint would seek to overturn Chinese duties on exports of seamless stainless steel tubes made by firms such as Tubacex of Spain and Salzgitter of Germany, said the sources.

The filing, which may come as soon as tomorrow or Friday, could send a signal to Beijing that the EU is willing to take legal action against any duties it considers to be based on retaliation rather than objective evidence.

It comes after Beijing's decision last week to investigate alleged dumping of EU wine, in apparent retaliation against the imposition of provisional duties on Chinese solar panels, the biggest trade case the EU has launched.

WTO rules prevent members from levelling tit-for-tat sanctions, instead requiring proof assembled via a thorough investigation that a country's industry has suffered damage before any duties can be imposed.

The sources said the stainless steel case was separate from the dispute over solar panels and wine. Under WTO rules, the EU had a limited time to join the complaint filed by Japan.

In February, the EU won a similar WTO dispute against Chinese duties on X-ray scanners, with a settlement panel in Geneva agreeing the duties imposed by Beijing had not been the result of a proper and thorough investigation.

One EU diplomat said victory in that case, which was the first time Brussels had challenged Chinese trade defence measures, emboldened the EU.

"The [European] Commission is quite confident that retaliation by the Chinese is now recognised, so they think they have a good chance to win," the diplomat said.

Another source said the commission, the EU's executive, will brief the Chinese tomorrow before opening the complaint on behalf of the EU, before a meeting of EU trade ministers in Luxembourg on Friday.

Japan is challenging the steel tube duties and how they were applied, alleging that Beijing did not have enough evidence and kept what it did have secret, shielding the companies who had complained.

The tubes, used in coal-fired power plants, are made in Japan by firms such as Nippon Steel and Sumitomo Metal.
 

t_co

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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.
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.
 

bose

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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.
China neither have power nor the will to enforce"¦
 

xingapore

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China neither have power nor the will to enforce"¦
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.
 

bose

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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.
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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