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Chinese PV manufacturers respond to EU dumping investigation


Post Date: 10 Sep 2012    Viewed: 350

Three of the largest Chinese solar photovoltaic (PV) manufacturers have responded to the anti-dumping investigation announced by the European Commission (EC) on September 6th, 2012.


Suntech Power Holdings Company Ltd. (Wuxi, China), Yingli Green Energy Holding Company Ltd. (Baoding, China) and Trina Solar Ltd. (Changzhou, China) have all released statements regarding the move.


"Our industry's mission is to make solar affordable for everyone and we are concerned that trade barriers will only delay the industry from fulfilling this," said Suntech Founder, Executive Chairman and Chief Strategy Officer Dr. Zhengrong Shi.


"As a global solar company listed on the NYSE, we are well-prepared to substantiate our strict adherence to fair international trade practices. We are currently reviewing the notice of initiation, and will cooperate fully with the European Commission in its investigation."


The statements by all three manufacturers include similar points, denying dumping or other unfair trade practices, pledging cooperation with the EC investigation, and warning of damage to the global PV industry from protectionism. Much more serious implications than U.S. trade case


This latest investigation follows a similar, open trade case through the U.S. Department of Commerce, which has already resulted in preliminary duties on Chinese PV cells and modules made with these cells.


The limited scope of the U.S. trade investigation and the fact that the U.S. market is dwarfed by Europe has made it relatively easier for Chinese manufacturers to find solutions to avoid tariffs, including sourcing PV cells from Taiwan in U.S.-bound products.


The EU investigation is a much more serious danger to Chinese PV producers, as Europe represented 75% of the global PV market in 2011. Also, the EC expressed that it will investigate silicon wafers, PV cells and modules, which could result in a ruling on a much larger part of the PV value chain, and potentially remove easy work-arounds.


However, trade experts also note that it is much more difficult to secure an anti-dumping ruling at the EC. Power in numbers for investigation supporters CASE President Jigar Shah asserts that the majority of EU-based solar companies oppose the imposition of "harmful taxes on the global solar industry".


However, the EC has stated that the collective output of the more than 20 companies requesting the investigation represent more than 25% of EU PV production, and that these companies represent more EU production than the companies formally opposing the complaint.


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