EU solar duties may harm trade: China

BEIJING - Reuters

The Chinese commerce minister warns the EU that its decision to implement duties on Chinese solar panels will ‘seriously harm’ bilateral trade. AFP photo

China warned the European Union on May 16 that duties on Chinese solar panels would “seriously harm” bilateral trade, upping the tone of criticism a week after the EU said it would move ahead with hefty penalties in June.

The European Commission has agreed to impose average import duties of 47 percent on solar panels from China, according to officials, a move they say is to guard against the dumping of cheap goods in Europe.

China’s Ministry of Commerce spokesman Shen Danyang said he hoped reports about the duties were wrong.

“If this information is true, this action by the European Union would seriously harm China-Europe trade relations,” Shen told a news conference.

Shen said “provoking trade friction with China” was like “dropping a boulder on one’s own foot” and would not help Europe break free from economic crisis.

New investigation

Trade friction between China and the EU is already high. The EU has 31 trade investigations, 18 of them involving China. The solar case is the largest to date, impacting 21 billion euros ($26.9 billion) of imported Chinese solar panels, cells and wafers.

The Commission said this week it was prepared to launch another investigation into anti-competitive behaviour by Chinese producers of mobile telecoms equipment.

China is expected to decide in June whether to levy its own duties on imported European, U.S. and South Korean solar-grade polysilicon, a raw material used in solar panel production.