Experts said China's photovoltaic (PV) sector may experience a new round of reshuffling amid fresh trade tensions with the European Union (EU).

Zhang Shuai, an analyst with Sinolink Securities, said Monday that if the EU ends up imposing high duties on Chinese solar products, the PV sector will face a new round of reshuffling and the elimination of excessive production capacity.

"This will be conducive to the sector's medium- and long-term development, although the sector's recovery will be impeded," Zhang said.

Earlier this month, the EU imposed an interim anti-dumping duty of 11.8 percent on imports of all Chinese solar panel products, including panels, cells and wafers. If both sides fail to come to an agreement, the duty will be raised to an average of 47.6 percent in two months.

Cai Jibo, president of Phono Solar Technology Co., a leading solar manufacturer, agreed that the sector will see more drastic reshuffling due to excessive capacity.

Cai said the PV sector cannot wait for policy support from the government, but instead needs to eliminate weak companies in order to consolidate the industry.

The Chinese Government will use a series of measures to boost the sagging PV sector due to subdued overseas demand, including promoting distributed PV power projects and offering financial support, according to an executive meeting of the State Council.

(Xinhua News Agency June 17, 2013)