Chinese solar panel manufacturers Thursday called on Beijing to begin talks with the European Union to prevent what they said would be the largest trade dispute in the history of China-Europe relations.
Yingli Green Energy Holdings, Suntech Power Holdings, Trina Solar and Canadian Solar said in a joint statement that an investigation into dumping allegations could trigger a trade war between China and the EU, “which would cause huge losses for both parties.”
Earlier this week, SolarWorld AG, one of Europe’s largest panel makers, along with other companies, filed a confidential complaint with the EU seeking import tariffs on Chinese-made panels, alleging that the Chinese companies received illegal subsidies and were dumping goods.
“We strongly appeal that, before official initiation of the investigation by the EU, the Chinese government start a high-level dialogue with the EU immediately, seek to reach a solution jointly…and block the initiation of the investigation,” the Chinese companies said.
If the EU moves ahead, the Chinese government “should take any and all necessary measures to protect all aspects of the legitimate interests of the Chinese companies.”
Renewables have become a source of growing tension between Beijing and the West, as Chinese manufacturers of solar panels and windmills grabbed market share after Europe’s debt crisis led to a cut in subsidies for clean-energy projects, squeezing local manufacturers.
The US has slapped tariffs on Chinese-made windmill towers and solar panels to counter subsidies and alleged dumping. In response, China launched investigations into possible solar-equipment subsidies by the US.
Earlier this year, China said preliminary findings from a probe of six clean-energy projects in five US states showed violations of international trade law.
The EU and China are already locked over a bitter dispute over an EU plan to punish Chinese airlines if they don’t comply with a program to curb carbon emissions.
China exported $35.8 billion worth of solar panels in 2011, with the EU accounting for more than 60 per cent of the products, the Chinese solar companies said. The EU is the world’s largest market for panels.
China and the EU are each other’s largest trade partners, so tariffs against Chinese panel makers could set a dangerous precedent that could hurt trade in other sectors such as automobiles, aviation and luxury goods, Yingli’s legal counsel Arthur Chen said. “It will be an unprecedented case with an unprecedented influence.”
At stake are also hundreds of thousands of jobs in the EU solar industry, which has already been hit by austerity measures.
“In order to save just 10,000 jobs in the manufacturing sector, the EU could lose 300,000 jobs along the whole supply chain of the solar sector—from upstream to downstream,” Mr. Chen said.
There is a 45-day window to dissuade the EU from deciding to launch an investigation. During this period, Chinese panel makers and their European allies will fiercely lobby their respective governments over the issue, Mr. Chen said.
A total of 40 European solar companies that source supplies from China have formed a lobbying group to oppose the trade complaint, he added.
