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Recently, the EU has officially launched an anti-circumvention investigation of Chinese photovoltaic panel companies, after EU photovoltaic companies accused Chinese counterparts of violating previous price agreements
reached to avoid anti-dumping tariff penalties.
This means that China's exports of photovoltaic products may face punitive tariff sanctions
before the end of the year.
The European Commission has formally investigated
whether Chinese PV companies deliberately used circumvention to circumvent the 2013 price agreement.
Under the price agreement, Chinese PV product manufacturers agreed to voluntarily raise the price of their products to a level
similar to that of EU companies.
The latter accuses Chinese companies of receiving unfair government subsidies, such as low-interest loans and export subsidies
.
After an initial EU investigation and threats of punitive tariffs, the two sides reached this compromise and received strong support
from major EU countries.
However, less than a year later, EU PV panel companies began complaining that Chinese companies used false advisory agreements to return funds to customers, among other means, to circumvent price agreements
.
The complaint filed by German manufacturer SolarWorld also refers to another tactic used by Chinese companies, which is to ship Chinese-made PV products to Europe through Taiwan or Malaysia, making the products appear to be produced in transit and thus do not need to increase the price
according to the agreement.
Foreign media reported that the EU's latest investigation will take nine months to reach a conclusion
.
The only long-term solution to the dispute over PV products is for the Chinese government to abandon subsidies to the industry
.
This may not be easy, as the Chinese government's practice of subsidizing companies has historical roots
.
Until China actually changes its approach, this trade war will continue, and after this failed attempt by the European Union, Western countries may not seek a negotiated solution
.
Recently, the EU has officially launched an anti-circumvention investigation of Chinese photovoltaic panel companies, after EU photovoltaic companies accused Chinese counterparts of violating previous price agreements
reached to avoid anti-dumping tariff penalties.
This means that China's exports of photovoltaic products may face punitive tariff sanctions
before the end of the year.
The European Commission has formally investigated
whether Chinese PV companies deliberately used circumvention to circumvent the 2013 price agreement.
Under the price agreement, Chinese PV product manufacturers agreed to voluntarily raise the price of their products to a level
similar to that of EU companies.
The latter accuses Chinese companies of receiving unfair government subsidies, such as low-interest loans and export subsidies
.
After an initial EU investigation and threats of punitive tariffs, the two sides reached this compromise and received strong support
from major EU countries.
However, less than a year later, EU PV panel companies began complaining that Chinese companies used false advisory agreements to return funds to customers, among other means, to circumvent price agreements
.
The complaint filed by German manufacturer SolarWorld also refers to another tactic used by Chinese companies, which is to ship Chinese-made PV products to Europe through Taiwan or Malaysia, making the products appear to be produced in transit and thus do not need to increase the price
according to the agreement.
Foreign media reported that the EU's latest investigation will take nine months to reach a conclusion
.
The only long-term solution to the dispute over PV products is for the Chinese government to abandon subsidies to the industry
.
This may not be easy, as the Chinese government's practice of subsidizing companies has historical roots
.
Until China actually changes its approach, this trade war will continue, and after this failed attempt by the European Union, Western countries may not seek a negotiated solution
.