China could face billions of euros worth of charges for selling underpriced solar panels to European countries as new rules come into effect in Europe.
The European Commission’s sanctions, which come into force tomorrow (Thursday), start at a low tariff of 11.8% for the first two months to encourage negotiation over the minimum price for selling solar panels in Europe.
Failing to reach an agreement would mean the provisional duties become permanent for five years from December.
Chinese solar panel production is greater than the entire global demand and 20 times larger than home demand, and the country’s dominance of the European solar panel market saw it rise from zero to more than 80% of the market in recent years.
In response to the EU sanctions, which were opposed by 18 of 27 EU members – including the UK and Germany – over fear of a trade war, China has lauched a anti-dumping probe into wine imported from Europe, on behalf of Chinese wine manufacturers.
China’s Commerce Ministry claimed the EU duties were being imposed despite China’s sincerity in trying to resolve the solar panel situation.
“We have noted the quick rise in wine imports from the EU in recent years, and we will handle the investigation in accordance with the law,” said the ministry in a statement.
