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EU starts subsidy probe of Chinese solar panels

By Du Juan in Beijing and Ariel Tung in New York (China Daily)

08:24, November 09, 2012

Workers inspect a solar panel at Shanghai Shenzhou New Energy Development Co Ltd's production plant in Lianyungang, Jiangsu province. Si Wei / for China Daily

Analysts say dispute will prevent progress in sector's development

The European Union announced on Thursday the start of an investigation into Chinese manufacturers of photovoltaic solar panels.

The action came a day after the US International Trade Commission determined that imports of Chinese photovoltaic cells and modules have hurt the US solar industry.

Analyst said the decisions will lead to a trade war in the global renewable energy market, which will impede the development of solar energy technology.

The EU's investigation into whether the Chinese government gives subsidies to solar panel manufacturers comes after a separate European inquiry looked into charges that Chinese companies were selling photovoltaic solar cells into the European market below cost, a practice known as dumping.

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