Central European PV dispute needs to cool down

Summary on less than a week, but because of what Chinese solar panels made nervous before the Chinese Prime Minister to visit Germany between the European Commission (EuropeanCommission) and German atmosphere, to prepare the former anti-dumping duties to Chinese producers, the latter due to concerns .. .
Less than a week before the Chinese Premier visited Germany, the European Commission and Germany were nervous about the situation of Chinese solar panels. The former is preparing to impose anti-dumping duties on Chinese producers, while the latter is worried about China. Retaliation for German exporters tends to be negotiated.

The German criticism of EU Trade Commissioner Karel De Gucht may sound contradictory: China's sale of renewable power equipment has caused a sharp drop in product prices on the market, making German solar panel makers serious Damaged. The complaint that accused China of dumping and providing illegal subsidies was originally from the German company SolarWorld.

But this dispute illustrates the complexity of global manufacturing and the ineffectiveness of protectionism. Anti-dumping duties will not only damage the target of China's solar panel manufacturers, but the resulting price increase will also cause losses to Europeans. De Gucht should listen to the opinions of Germany.

The most immediate victims will be those who purchase photovoltaic products for cheaper, more environmentally friendly energy, as well as the accessories industry. In an indirect perspective, if this policy leads to a decline in power generation capacity, all power users will have to bear the consequences, although this impact may be small.

The last thing that should be done is the damage to the panel supplier, as rising prices mean fewer solar panels will be sold. Some of them are Western companies and even German companies, and they hold advanced technologies such as the production of ultra-high-purity polysilicon. Of course, China may also take revenge actions to create trouble for European exporters in other fields.

Therefore, Germany is starting from its own interests. But this is also instructive. If De Gucht decides to levy taxes (he must make a decision before June 6 and can then implement it for six months), the cost of bringing this to Europe's broad economic sector is higher than the economic benefits of the industry he protects. . This has not taken into account environmental factors. Obviously, the Earth needs cheaper renewable energy than products made in Europe.

De Gucht is worried that China may be in an industry that intends to weaken Europe's desire to develop in China. This is also understandable. But he picked the wrong battlefield. If he had to levy taxes, it would be very difficult for Germany to win a specific majority vote in the EU member states to veto him. Beijing and Berlin have more reason to reach a compromise that is comprehensive and in line with EU interests and acceptable to De Gucht.

Compiled from Financial Times

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