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Anti-dumping Duties on Chinese PV-Module: still no agreement between Beijing and Brussels
China announces that the production of photovoltaic energy will quadruple by 2015, but the production of modules is 150% of the worldwide demand yet.
The dispute related to the Chinese PV panels, between the EU and China, seems far from resolution. Despite sources in Brussels speak of an agreement already on the table, the anti-dumping duties are likely to turn into a spark that could set off a real trade-war between the two fronts.
In 2011 Chinese exports of solar panels in Europe has exceeded 20 billion euro the internal demand, with average prices 88% lower than made in EU modules, allowing Chinese companies to win 80% of the EU market. The result is the lowering cost of the modules but, on the other hand, it has went out of business more than 50 European manufacturers of modules, reason why the EU has initiated an anti-dumping investigation.
The Chinese government, which considers the photovoltaic sector a strategic asset, subsidizes the PV companies, so that the prices of Chinese panels are much lower than those produced in Europe (almost 9 times lower). The Union has imposed duties to rebalance prices, and now the two sides are carrying out a negotiation, but there are still two fundamental issues unresolved: share and duration of the measures.
At the moment the Chinese panels duties are provisional, with a share of 11,8%, until August 6, when they will increase to 47.6%, for a period of 4 months. Negotiations must lead to an agreement before this date. According to ANSA (Italian press agency) sources at the time, the gap between the proposal put on the table by the EU and the Chinese, it would be only 5 cents, but if the EU has every interest in maintaining the high duties, repercussions from part of China are vey likely. China could apply similar measures to European products and has, in fact, just opened an anti-dumping investigation on European wines.
Meanwhile, the Chinese government has announced plans to bring the Chinese production of photovoltaic electricity to 35 GW by 2015, quadrupling the current production, in order to absorb, at least in part, the excessive production, which covers more than 150% of global demand. It’s easily understandable how huge is the stock of unsold Chinese panels and how the exorbitant over-production take years to come to a further lowering of prices.
In 2011 Chinese exports of solar panels in Europe has exceeded 20 billion euro the internal demand, with average prices 88% lower than made in EU modules, allowing Chinese companies to win 80% of the EU market. The result is the lowering cost of the modules but, on the other hand, it has went out of business more than 50 European manufacturers of modules, reason why the EU has initiated an anti-dumping investigation.
The Chinese government, which considers the photovoltaic sector a strategic asset, subsidizes the PV companies, so that the prices of Chinese panels are much lower than those produced in Europe (almost 9 times lower). The Union has imposed duties to rebalance prices, and now the two sides are carrying out a negotiation, but there are still two fundamental issues unresolved: share and duration of the measures.
At the moment the Chinese panels duties are provisional, with a share of 11,8%, until August 6, when they will increase to 47.6%, for a period of 4 months. Negotiations must lead to an agreement before this date. According to ANSA (Italian press agency) sources at the time, the gap between the proposal put on the table by the EU and the Chinese, it would be only 5 cents, but if the EU has every interest in maintaining the high duties, repercussions from part of China are vey likely. China could apply similar measures to European products and has, in fact, just opened an anti-dumping investigation on European wines.
Meanwhile, the Chinese government has announced plans to bring the Chinese production of photovoltaic electricity to 35 GW by 2015, quadrupling the current production, in order to absorb, at least in part, the excessive production, which covers more than 150% of global demand. It’s easily understandable how huge is the stock of unsold Chinese panels and how the exorbitant over-production take years to come to a further lowering of prices.
