Taipei, Wednesday, August 31, 2016 03:01 (GMT+8)
mostly cloudy
Taipei
31°C
Strong reaction from China, EU members over solar trade row
Jackie Chang, DIGITIMES, Taipei [Tuesday 28 May 2013]

Europe may levy anti-dumping tariffs on China-made solar products. This will increase the prices of China-made solar products in Europe. To retaliate, China will likely impose tariffs on Europe-based polysilicon through its on-going anti-dumping investigation into US-, South Korea-, and Europe-based polysilicon makers. According to UK-based media, The Telegraph, most EU state members oppose the punitive tariff that may be as high as 67%. According to the report, countries such as Germany, the UK, and The Netherlands oppose the trade war because the countries are fearful of losing business in China.

The magnitude of reaction since the announcement that the EU anti-dumping tariff rate may be in the range of 47-67% has been strong compared to the reaction to the US punitive tariff rate. The reason is because the EU anti-dumping tariff may be levied on China-made solar modules. China is the biggest solar module exporter. The EU punitive tariff will hurt China-based firms where it hurts the most. According to Forbes, China sold about US$21 billion worth of solar panels and components to the EU market in 2012. Despite the strong growth of installations among emerging markets, Europe remains the largest solar market in the world. Also, many Europe-based solar firms exited the market in recent years; hence China-based firms have been dominating the market. Some believe it is because of the low price solar modules provided by China-based firms, coupled with lucrative incentives that allow solar installations to soar in Europe. Supporters of the tariff believe that it is precisely due to the low price solar modules that have put Europe-based solar firms out of business.

The solar market is still in its infancy in many countries and it is understandable for governments to protect domestic firms.

China has been known for providing hefty subsidies to nurture infant industries and solar is one of them. The subsidies, coupled with cheap labor, allow China-based solar firms to produce products using low costs and expand capacity rapidly. It is very difficult for firms from other countries to compete.

The possible punitive tariff may just be a way for Europe to get China to sit down for a trade talk. According to UPI.com, officials from China have arrived in Brussels to begin the trade talk on May 27, 2013. The trade talk will include the recent trade dispute over solar panels and wireless telecom equipment.

Realtime news
  • LTCC module maker ACX to see revenues high in August, 3Q16

    Bits + chips - Newswatch | 4h 41min ago

  • Smartphone vendors likely to follow Samsung Electronics to adopt IR LED-based iris recognition

    LED | 5h 34min ago

  • Samsung announces mass production of 14nm Exynos chips

    Bits + chips | 5h 44min ago

  • Hiwin Technologies expects robot business to begin to profit at end of 2016, says report

    Before Going to Press | 6h 2min ago

  • Acer sets up 2 subsidiaries to develop smart home and transportation devices

    Before Going to Press | 6h 3min ago

  • Orders for iris recognition chips to boost Xintec revenues in 2017, says report

    Before Going to Press | 6h 11min ago

  • Thermal module maker AVC reports earnings for July

    Before Going to Press | 6h 11min ago

  • Connector maker Alltop posts EPS NT$2.55 for January-July period

    Before Going to Press | 6h 13min ago

  • LTCC module maker ACX to see revenues high in August, 3Q16

    Before Going to Press | 6h 40min ago

  • Mirle develops 3D curved glass forming equipment, says report

    Before Going to Press | 6h 42min ago

  • Tripod to post 5-8% revenue growth in 3Q16, says report

    Before Going to Press | 7h 1min ago

  • Taiwan market: LG launches X-series smartphones

    Before Going to Press | 7h 2min ago

  • Enterprise private, public cloud use on the rise, says VMware CEO

    Before Going to Press | 7h 21min ago

  • VMware unveils Cross-Cloud Architecture, Cloud Foundation at VMworld 2016

    Before Going to Press | 7h 23min ago

  • Taipei to host International Industrial Automation show

    Before Going to Press | 7h 25min ago

  • LG Electronics to launch 38-inch 21:9 Ultra Wide LCD monitor

    Before Going to Press | 7h 30min ago

  • NVM IP provider eMemory unveils EcoBit technology for RFID and NFC applications

    Before Going to Press | 7h 31min ago

Pause
 | 
View more
IFSEC
Display panels for wearable devices
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.