China offers EU compromise in solar war - report

Jul 5, 2013 - China has offered to introduce a minimum price and an annual quota of solar panel exports to the EU in a bid to solve the conflict and avoid higher punitive import duties, the Shanghai Securities News said on Friday.

In return, the EU should not impose anti-dumping tariffs or they should be very low, the state media said.

Beijing is in talks with the EU after the latter decided to introduce import duties of between 37.2% and 67.9% on Chinese solar panels, cells and wafers. For two months starting on June 6, defined as a transitional period, Chinese solar imports are subject to a tariff of 11.8%. After August 6 the full duties, which stand at 47.6% on average will be in force, unless China and the EU reach an alternative solution.

A compromise could be reached next month, Reuters said today, citing Sun Guangbin, secretary general of the solar department of China's Chamber of Commerce for Import and Export of Machinery and Electronic Products. Guangbin sees a big chance for solving the dispute, but he did not reveal more details.

China will try to reduce its dependence on the EU, where currently almost half of its solar panels are exported, by expanding solar power on the domestic market, Shanghai Securities News said. By 2020, Beijing plans to put into operation solar plants with a total capacity of 100 GW, compared with 800 MW at the end of 2010.

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