Sino-European PV dispute suspended the EU to continue investigations

Abstract The European Commission said yesterday that some Chinese PV companies will be exempt from high anti-dumping duties due to the “price commitment” agreement with China. On August 3, the European Commission officially issued an official announcement and decided to accept the Chinese "...
The European Commission said yesterday that some Chinese PV companies will be exempt from high anti-dumping duties due to the "price commitment" agreement with China. On August 3, the European Commission officially issued an official announcement and decided to accept the Chinese "price commitment". The Chinese Ministry of Commerce welcomed this, which indicates that the largest trade friction in the history of China and Europe has been temporarily resolved through negotiations. A number of media commentators believe that Premier Li Keqiang played a crucial role in the success of the Sino-European negotiations.

"If there is no prime call, I am afraid it will still hang."

Bai Ming, a researcher at the International Trade and Economic Cooperation Research Institute of the Ministry of Commerce, said to the South, that in the Sino-European trade, the specific negotiation of individual products rose to the level of the Prime Minister is extremely rare.

As early as May this year, when Li Keqiang visited Switzerland, he published a signed article in the "New Zurich Newspaper", emphasizing the principle of "one persistence and two resoluteness": insisting on solving problems through negotiation, resolutely opposing trade protectionism, and resolutely safeguarding China. The interests of the enterprise. These three principles have been well implemented in future negotiations.

Later, Li Keqiang said in a visit to Germany that these trade protectionist practices have sent a wrong signal to the international community, which has harmed others and the Chinese side is resolutely opposed. We advocate proper settlement of trade frictions through dialogue and consultation, and firmly safeguard world trade and investment liberalization and facilitation.

On the evening of June 3, Li Keqiang said in a meeting with European Commission President Barroso that if the case is not handled well, it will not only affect the interests of Chinese and European companies, but also trigger a trade war. There is no winner in the trade war. I hope that China and the EU will proceed from the overall situation and resolve trade disputes through negotiation and consultation. "If the European side insists on taking sanctions measures, China must inevitably carry out counter-measures."

In the interview, the director of the Center for Economic and Diplomatic Studies of Tsinghua University said in an interview that the prime minister’s phone call "has great effect. If there is no call by Premier Li Keqiang, this matter may still be suspended."

Why does the PV industry need the Prime Minister to "go out"?

Why, in the business negotiations of many individual commodities, only the photovoltaic industry needs the “prime level” to sit on the negotiating table?

According to public information, the trade friction between China and Europe was once very severe. In 2011, China's overseas exports of photovoltaic products valued at 35.8 billion US dollars, of which the EU accounted for 60%, involving exports of more than 20 billion US dollars. Europe's double-counter case against China's PV is considered to be the largest trade friction between China and Europe and the largest trade dispute in the world. It affects the survival of thousands of Chinese companies and the employment of more than 400,000 people. It also affects the employment of 250,000 people in the EU. .

Bai Ming believes that as far as an export product is concerned, due to the degree of market economy and the status quo of the two countries, similar contradictions are often unable to be resolved through several negotiations. However, the intervention of the Prime Minister has elevated this specific event to the height of bilateral relations. "As far as the PV event itself is concerned, if people are going to double-reverse you, how can you explain it? The strength is also very small. But if you put it on the big platform for the development of bilateral relations between China and the EU, both China and the EU must look at the overall situation and look at the PV in the overall situation. Maybe it will be solved."

And the annual China-US Strategic and Economic Dialogue can also see the involvement of national leaders in trade issues. The RMB exchange rate issue, the Sino-US trade deficit issue, and the carbon tariff issue will all be discussed in previous dialogues. "There are many examples of China and the United States. In the Sino-European trade relationship, the involvement of state leaders may be rare. Especially for a specific problem like photovoltaics," Bai Ming said.

EU continues to investigate PV products in China

In fact, the background of the friction in the photovoltaic industry can be attributed to the status of industrial transformation in China in recent years. As early as September 6 and November 8, 2012, the European Commission officially launched anti-dumping and countervailing investigations on photovoltaic panels, photovoltaic cells and other photovoltaic modules imported from China.

"China has become a big trading country, and the probability of trade disputes will naturally increase." Bai Ming explained to the South. In addition, Europe is eager to recover from the European debt crisis, and the United States has re-industrialization, which will largely collide with Chinese industries.

Bai Ming believes that on the one hand, due to the economic crisis facing the EU, the uncompetitive industries that the developed countries are preparing to phase out have now “squatted and continue to do”, and there has been a return of the industry, which has coincided with some industries in China. On the other hand, China is in the period of trade transformation and upgrading. The industry has been upgraded from labor-intensive to high-value-added and high-tech, and there are more and more coincidences with European and American countries. The coincidence point is the point of conflict.

Although China and the EU have temporarily reached a "price commitment" agreement, they will not adopt temporary taxation measures, but the European Commission also said yesterday that the countervailing investigation on solar cells and related components produced in China will continue. The final findings will be announced by the end of this year.

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