The EU’s trade chief will recommend placing punitive import duties on billions of euros of solar panels from China, people close to the matter say, putting up a barrier to protect European producers but risking upsetting Beijing.
The case, the biggest the Commission has ever targeted, highlights the balancing act facing Brussels as Europe tries to protect against cheap imports while needing China, the EU’s second largest trading partner, to help it emerge from recession.
Trade Commissioner Karel De Gucht is expected to tell his fellow EU commissioners on Wednesday that Brussels should levy the tariffs to guard against Chinese production that quadrupled between 2009 and 2011 to more than the entire global demand.
“De Gucht is ready to go ahead,” said one person close to the decision-making. “The Commission has a very solid case.”
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