THE European Union launched a probe yesterday into alleged state subsidies for Chinese solar panel manufacturers, intensifying the conflict over the multi-billion dollar solar power equipment market that is straining trade ties.
The EU's executive body is already investigating allegations of Chinese makers "dumping" solar panels in overseas markets, meaning deliberately selling products for less abroad than at home or at less than cost.
It also follows a decision by the US to impose duties on solar power products from China, although Brussels says its decisions are completely separate from Washington's.
"Industries in the United States and Europe are becoming increasingly aware there is much more evidence of subsidies in China," said an EU official involved in the investigation. "But this is not a purely adversarial process. We have said to the Chinese government that we are open to finding a solution."
The friction comes at a bad time for both sides with the EU China's biggest trade partner and China the EU's second biggest after the US.
Landmark building should respect the public's feeling