EU anti-dumping decision rumours abound
Reports are coming in that the EC has made its decision to impose punitive tariffs on Chinese manufacturers.
Multiple media sources are reporting that the European Commission (EC) has agreed to support EU Trade Chief Karel De Gucht's proposal to impose punitive tariffs on Chinese solar and PV module and cell manufacturers. At this stage the information seems to be coming from multiple unnamed sources with the EC declining to comment or make any official statement ahead of the expected announcement on June 6th.
There is s till a long way to go in the dispute but the signs are that import duties will be levied against all PV and solar products emanating from China. This sis despite a number of industry voices recently suggesting that no such move would occur for fear of a trade retaliation from the Chinese government. The impact of such a move by the EC is unknown with retractors of such a decision suggesting it will cost the European industry and market billions of Euros in the long run.
The stock market has reacted to the news regardless of its veracity with shares in German based manufacturers such as SolarWorld, the company that instigated the complaint, rising while Chinese companies listed on European and USA exchanges were already seeing share price drops.
Nothing can be official until all 27 EU member states ratify the decision. This is usually a formality but China is key to the EU's goal of lifting itself out of current financial problems and countries like France and Germany may still have something to say on the matter. The member country representatives meet on May the 15th to discuss the issue.
The EU has tread very carefully in this case involving more than 100 Chinese manufacturers and solar panels worth 21bn Euros. Imposing a 47% duty on all products sold into the EU will have a huge impact on an industry going through a global consolidation process. Many believe the outcome will not save a beleaguered European manufacturing industry as even with this decision the Chinese are still cost competitive .
There is some discussion that the leaking of this information is designed to pressure the Chinese to reach some sort of deal with the EU and encourage a self imposed trade limit on Chinese exports but this is seen by many Chinese as protectionist as the complaint itself.
Despite the official silence from all parties involved the UN Chinese ambassador as been happy to talk to the media and points out that such a decision will send a message that regions are using protectionist measure to protect their local economies. The fear amongst many Europeans is that China will choose to retaliate by placing European industries under a similar microscope.
The Chinese can still appeal any EU decision at the European Court of Justice or the World Trade Organisation so there is still some time before the real situation is understood and even longer before the impacts are realised.
