The European Union insists the ‘ball is in China’s court’ over the anti-dumping tariff on imports of Chinese solar panels.
The commission said a nine-month investigation had concluded that the selling of panels below cost price was putting 25,000 jobs at risk.
Levies of 11.8% came into effect today for two months, which EU chiefs hope will encourage the Chinese to compromise. Without a deal the tariff will go up to 47.6% in August. A decision will be taken on whether to impose permanent duties on Chinese panels later this year.
Earlier this week, ahead of the levies coming into effect, China announced an anti-dumping probe into wine imported from Europe, on behalf of Chinese wine manufacturers. The investigations will affect France, Italy and Spain in particular – the main supporters of the solar panel tariffs.
But the EC said the staggered response was to allow a smooth transition to European markets and to give the Chinese an “incentive” to negotiate.
“The ball is now in China’s court,” said EU Trade Commissioner Karel De Gucht.
“If it clear that if China does not provide a solution by August, then the higher tariffs will apply.”
He said an EU investigation had shown that Chines solar panels were being sold at lower than the price to produce them and the market price should be 88% higher.
“Our action today is an emergency measure to give life-saving oxygen to a business sector in Europe that is suffering badly from this dumping,” he added.
“Our response is balanced, legal and justified within international trade rules and designed to prevent the situation turning fatal. “This is not protectionism. Rather it is about ensuring international trade rules also apply to Chinese companies.”
The EU has imposed the tariff despite opposition from Germany, China’s biggest trading partner in the EU.