Accompanied by the U.S. Department of Commerce's decision to set anti-dumping duties ranging from 18.32 percent to 249.96 percent on solar-energy cells imported from China in May 2012, the case was first proposed by EU Pro Sun, a joint initiative of members of the EU solar industry, who claimed in its complaint lodged on July 25, 2012 that solar panels and their key components imported from China enter the European market at prices below market value.

"EU member nations should oppose proposed anti-dumping duties on Chinese solar panels that may hinder free trade and market growth, the UK's Solar Trade Association said in a recent statement.

The provisional tariffs will increase the cost of photovoltaic (PV) panels imported from China and other countries.

"These duties, if imposed, will damage the UK's solar market, particularly the large-scale ground-mount sector," Paul Barwell, CEO of the association, said on May 8. "This is the perfect opportunity to demonstrate the UK's commitment to both free trade and the environment by urging other member states to vote 'no' to these duties."

"The duties will actually result in a net reduction in EU solar jobs, restrict the growth of the solar market, and damage Europe's chances of meeting its 2020 renewable targets," Barwell said, urging the British Government to vote against them.

Harm to trade

The Chinese Government called for the European side to be cautious in using protectionist measures.

"China and the EU are each other's most important trade partners," said Hua Chunying, spokeswoman for China's Ministry of Foreign Affairs, at a recent routine press conference. "We hope that both sides can maintain an attitude of constructive cooperation, and use dialogue and consultations to properly handle differences."

"Every year, roughly 70 percent of the solar panels and key components made in China go to the EU market," said Miao Liansheng, CEO of Yingli Green Energy, a major solar energy company and PV manufacturer based in Baoding, north China's Hebei Province. "With the 10-percent market share loss from the United States, what we are confronting now is whether China's PV industry can survive."

"Now, China is playing an increasingly important role in the EU's exports. To ride out of the current debt crisis, the EU has to depend on exports," said Zhang Jian with the China Institutes of Contemporary International Relations.

"The EU should spare no efforts to safeguard China-EU trade relationship, rather than resorting to protectionism. While China's economy may suffer because of these anti-dumping measures, the EU could suffer more," said Zhang.

On May 17, the EU's top officials lodged a charge against Huawei Technologies and ZTE, China's two leading telecom equipment providers, for alleged dumping behavior and illegal government subsidies.

"Since the outbreak of the global financial crisis, trade protectionism has been on the rise, and it has spread to China's high-end products," said Huo Jianguo, President of the Chinese Academy of International Trade and Economic Cooperation. "For one thing, it's the result of the rapid development of the telecommunications industry; for another, it reminds us that Chinese enterprises should improve their adaptability."

Email us at: dengyaqing@bjreview.com