The solar industry’s ongoing trade war reached Europe this week after a group of solar companies, led by Germany’s SolarWorld , asked the European Union to investigate claims that Chinese rivals had been selling their products below market value in Europe.
The request, confirmed by SolarWorld on Thursday, has raised the stakes in continuing disputes within the industry.
“We have to recreate a level playing field in the solar business. We have to stop Chinese dumping. Chinese companies are selling their products far below their own production costs, sometimes 50 percent below their production costs. It is hard to compete with that,” said Milan Nitzschke, SolarWorld’s vice president who is leading the EU ProSun group.
“A lot of companies who joined our initiative want to stay anonymous because they fear retaliation, but that is not a reason not to act, it is a reason to act and defend against those threats,” he told Reuters. EU ProSun is an initiative which comprises 25 members in Germany, Spain, Italy and other EU countries. German solar module maker Sovello is also part of the initiative.
But not all European solar companies back the complaint and many say Europe should welcome Chinese imports because they make solar power more affordable. Europeans against SolarWorld’s move say the EU ProSun consortium only represents a fraction of the solar industry.
Close to 60 percent of China’s solar exports, worth $35.8 billion, were shipped to the EU in 2011 while Europe accounted for 74 percent of global solar installations in 2011.
Western solar companies have been at odds with their Chinese counterparts for years, alleging that they receive lavish credit lines to offer modules at cheaper prices, while European players struggle to refinance.
The European Commission, which has declined to comment on the issue, has 45 days to decide if it will start an investigation.
China’s solar companies warned of a trade war on Thursday, calling on the Chinese government to strike back against an anti-dumping complaint filed by rivals in Europe, but the Europeans said they would not be put off by retaliation threats.
A similar initiative was spearheaded by SolarWorld in the United States, leading the world’s largest economy to impose in May duties of about 31 percent on solar panel imports from China.
Post time: Jan-07-2017