Forbes - Responding to allegations that Chinese solar panel producers were undercutting the European market with the help of questionable government subsides, Beijing struck back this week with possible tariffs and a formal appeal to the World Trade Organization (WTO).
In September, a coalition of European-based solar panel producers lodged a formal complaint, suggesting that below-market Chinese imports were making it impossible to compete locally or abroad. Launched by European Commission on behalf of EU Pro Sun, an industry association of solar producers from 20 EU countries, the investigation suggests that Chinese companies have been able to dump under market price solar panels and parts on European consumers at a loss thanks to significant financial support from the state. According to a New York Times report, the European Union represented 80 percent of China’s solar salesworldwide so the low prices undercut the local market to the tune of $26.5 billion last year, or 6.5 percent of all E.U. imports for that period.