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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
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