The European Commission is to impose tariffs on imported Chinese solar panels in order to reduce the impact of cheap Chinese goods on the EU's solar manufacturing industry.
The Commission announced in May that it would impose punitive charges of 37.7-67.9 per cent on Chinese solar panels at EU borders. Beijing has called for further dialogue and says that it is already seeking to reduce state aid to domestic solar panel manufacturers.
The levies could start in early June. The Commission's decision is the result of an investigation sparked by a complaint filed last year by EU Pro Sun, an industry association representing 20 European solar firms.
According to analysts, the imposition of the tariffs comes too late for some European manufacturers that have already been forced into liquidation by falling prices for solar goods.
The tariffs are "also arguably unnecessary, since the Chinese central government is already seeking to pull the plug on aid-dependent Chinese module producers", said IHS Europe energy analyst Kash Burchett in a research note. "In December last year, the Chinese government signalled that it would not tolerate the continued protection of loss-making solar panel module component manufacturers, not on account of Western tariff policies but because the cost to China's economy is too high," added Burchett.
Brussels must tread a careful path between satisfying stressed European solar firms and maintaining relations with China, the EU's second-largest trading partner. China's Commerce Ministry says that it does not want to see a trade war emerge and wants further dialogue.
Not all European solar energy firms are in favour of the tariffs. In April the Alliance for Affordable Solar Energy wrote to EU trade commissioner Karel de Gucht to say that trade duties would push up component prices in Europe, leading to higher energy prices.
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