There are at least two negative messages out of the E.U.’s decision to impose punitive duties on solar panels from China: first of all, the E.U. lacks courage to face the fact and the ability of solving dispute through dialogue. In terms of decision-making, the E.U.’s mechanism has flaws; otherwise, Karel De Gucht, E.U. trade chief, could not have dominated such sensitive issue alone.
Price of Chinese solar panels have been compelled to increase by nearly 20 percent since the E.U. launched the probe last September. It’s estimated that Europe’s demand for China’s solar panels will plunge 85 percent if 15 percent of import duties are imposed.
The short-term duties come into force at 11.8 percent, far lower than the planned 47.6 percent, but it’s still detrimental. We have something to say on the current China- E.U. solar row.
Firstly, the duties embody the E.U.’s abuse of trade remedies, to which China firmly opposes. The duties harm China’s reasonable interests and send a wrong signal to other countries.
Secondly, settlement for this round of dispute needs the E.U.’s sincerity to talk with Chinese solar makers for an acceptable, reasonable and win-win agreement.
Thirdly, trade war is the last thing China wants and protectionism, without doubt, will meet resistance. If the E.U. clings to the current course, the consequences will be unbearable.
China did nothing wrong to make its solar industry competitive in price, which is the result of declined price of the raw materials and industrial progress. It has nothing to do with dumping and subsidies.
China responded immediately after the E.U. announced the anti-dumping and countervailing probe. China Chamber of Commerce for Import & Export of Machinery & Electronic Products (CCCME), representing Chinese solar makers, made patient and clear explanation to the E.U.
China is fully prepared psychologically for the hardships ahead and has no illusions about the following negotiation with the E.U. We will make biggest efforts and hope for the best meanwhile prepare for the worst. We have set the table for talks and have sufficient cards to play.
The trade scale between China and the E.U. is so huge that it’s natural to see frictions. The key is how the two economies can handle disagreements properly.
Reviewing China-E.U. ties in recent years, the conclusion is that if China and the E.U. move forward into same direction and focus on cooperation, there is no difficulty that both sides will fail to overcome. But if the both sides don’t take each other’s interests and concerns into consideration, or lack the sincerity of solving disputes through talks, China and the E.U. will hardly realize a sound development of the bilateral ties and economic cooperation.
Read the Chinese version at:欧盟，别逞一时之快; Source: People's Daily; Author: Zhong Sheng
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