Brussels, 26/09/2012 (Agence Europe) - In addition to an anti-dumping investigation already launched against the Chinese, Chinese solar panels have also been targeted by European industry as part of an anti-subsidies complaint.
Uniting behind the banner of the EU ProSun association, European solar panel manufacturers have stepped up their legal campaign against their Chinese rivals by submitting a complaint to the Commission on Tuesday 25 September, targeting subsidies granted by the Chinese government to the country's manufacturers.
This new complaint comes three weeks after the European Commission launched an anti-dumping investigation at the beginning of September into solar panels imported from China. The Commission is therefore having to respond to the most significant anti-dumping complaint ever submitted, involving Chinese exports of photovoltaic technology in Europe, which was worth around €21 billion in 2011.
EU ProSun has identified several forms of significant government subsidies to Chinese solar manufacturers. For instance, Chinese banks implement government policy by giving very low interest rates to solar manufacturers, and, if the borrower cannot pay back the loan, it may be written-off, extended indefinitely or paid off by other government-controlled entities. EU ProSun has denounced the subsidies granted at regional and local levels, such as interest reimbursements, electricity costs, VAT and credit guarantees. In a press release the association stated that, “Massive subsidies and state intervention have stimulated overcapacity more than 20 times total Chinese consumption and close to double total global demand. Hence, more than 90% of Chinese production had to be exported. Irrational overproduction on this scale cannot generate profits. Chinese subsidies shield manufacturers from insolvency, and are pumped into solar companies even if they are unprofitable. Most Chinese solar companies would have gone bankrupt a long time ago if not for endless government subsidies. Meanwhile over 20 major European solar manufacturers have become insolvent in 2012”.
The German SolarWorld coalition of European manufacturers within the EU Pro Sun association, through its US subsidiary, has already won a case in the US against Chinese photovoltaic dumping practices and subsidies granted to Chinese companies working in this sector.
Under Community law, the Commission has 45 days to decide whether this new complaint warrants a formal investigation. (EH/trans/fl)