China says EU solar duties to "seriously harm" trade ties

BEIJING Thu May 16, 2013 5:00am EDT

BEIJING (Reuters) - China warned the European Union on Thursday that imposing duties on Chinese solar panels would "seriously harm" bilateral trade ties, upping the tone of its criticism a week after the EU said it would move ahead with hefty penalties in June.

The European Commission has agreed to impose average import duties of 47 percent on solar panels from China, according to officials, a move they say is to guard against the dumping of cheap goods in Europe.

China's Ministry of Commerce spokesman Shen Danyang said he hoped reports about the duties were unreliable.

"If this information is true, this action by the European Union would seriously harm China-Europe trade relations," Shen told a news conference.

Shen said "provoking trade friction with China" was like "dropping a boulder on one's own foot" and would not help Europe break free from economic crisis.

Trade friction between China and the EU is already high. The EU has 31 trade investigations, 18 of them involving China. The solar case is the largest to date, impacting 21 billion euros ($26.9 billion) of imported Chinese solar panels, cells and wafers.

The Commission said this week it was prepared to launch another investigation into anti-competitive behavior by Chinese producers of mobile telecoms equipment.

China is expected to decide in June whether to levy its own duties on imported European, U.S. and South Korean solar-grade polysilicon, a raw material used in solar panel production.

The English-language China Daily newspaper cited an official with the surname Zhang as saying the Ministry of Commerce was likely waiting for an official EU decision before issuing its polysilicon ruling.

The EU solar duties would come into effect once the Commission publishes the decision in its Official Journal. Beijing has said it will defend against what is calls protectionist behavior.

On his first overseas trip since taking the office in March, Chinese Premier Li Keqiang at the end of May will stop in Germany, the world's biggest solar market last year.

German officials have called the European Commission's stance on the solar duties "hard" and say they are urging it to reach an amicable solution with China.

(Reporting by Michael Martina and Aileen Wang; Editing by Ron Popeski)

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Comments (4)
CaptRichie wrote:
Actually the entire western world’s economy began its long and miserable slowdown when Communist China opened up and allowed a billion new workers to join the global labor pool. This development led to out-sourcing, job loss, and deflation throughout the West. Job loss ultimately led to the housing market implosion as millions of working families lost their ability to carry their mortgage debt and their ability to relocate for better pay. So my advice is to let China stew in its own juice for a few years until they learn to behave. The fastest path to financial reconstruction for the West is to cut all trade with China and boycott their goods. They’ll probably call this an act of war and attack somebody, but, hey, you can’t have it all.

May 16, 2013 6:17pm EDT  --  Report as abuse
CountryPride wrote:
China, the definition of hypocrisy. Don’t place import duties on our solar goods while we rape your domestic market for billions in profit and bankrupt your companies. Meanwhile, you can’t even mail a package to China valued more than $75 US without 20% import duties being placed on it.

May 19, 2013 9:41pm EDT  --  Report as abuse
DavidinWY wrote:
China spent the greater part of the 20th century closely studying the west, then seems to have adopted the very worst parts. Remember folks, we reap what we sow. We have been relying on cheap goods while ignoring the reason why they are cheap. We knew that our outsourcing our manufacturing base and our technologies to China was what they had been trying to achieve through spies for 50 years. What should we expect? The west will become the third world, and the old third world will not get the same humanitarian aid from China that we were once able to (but no longer) provide. We have forgiven many debts, but when our time of need comes, China will demand what secrets and proprietary technology (we haven’t been great at keeping anyway) they haven’t already been given (or haven’t stolen from us already).

May 21, 2013 11:43pm EDT  --  Report as abuse
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