China's Photovoltaic Industry Suffered Again from Europe

Three years later, Europe’s resistance to China’s photovoltaic industry came again. Yesterday, it was reported that the European Photovoltaic Manufacturers Association once again filed a complaint alleging that Chinese companies attempted to evade import tariffs. In September 2012, the European Union began to conduct “double counter” investigations on Chinese companies and eventually imposed a three-year anti-dumping and anti-subsidy taxation field. People in the industry believe that this farce is only a continuation of the "double reverse" in Europe and the United States. The Chinese photovoltaic industry should use this to strengthen collaboration, enhance cohesion, and jointly face international competition.

Thirty percent of China's photovoltaic products were accused of tax evasion. Yesterday, sources said that the European Photovoltaic Manufacturers Association accused Chinese competitors of bringing products through third countries to Europe for sale in an attempt to circumvent import duties, and therefore appealed to the European Commission again.

It is understood that last month, Dutch tax inspectors had detected that an importer had transferred photovoltaic panels through European countries and other third-country ports to Europe. This behavior evaded tariffs of 12 million euros and accounted for 65% of the total tariffs. The European Photovoltaic Manufacturers Association ** and German Solar World Vice President Nietzschke said in an interview earlier that nearly 30% of China's photovoltaic products have escaped EU tariffs through third-country transport.

In response to this incident, the European Photovoltaic Manufacturers Association asked the European Commission to review the minimum measures for the lowest prices in Mainland China. In addition, the European Association that submitted the complaint also requested the Commission to conduct an anti-circumvention investigation and to block the transit routes of third countries.

At present, the European Commission has already monitored the matter and proposed to exclude the photovoltaic manufacturers accused of violations.

Two "Double Counterattacks" Impact on China's Photovoltaic Enterprises In fact, the photovoltaic "double reverse" war has already begun as early as 2012. In September and November 2012, the European Union conducted anti-dumping and countervailing investigations on crystalline silicon photovoltaic modules and key components originally produced in China. In December of the following year, the EU finally settled and accepted the price commitments made by 121 Chinese companies and imposed a three-year anti-dumping and countervailing duty on Chinese companies. Among them, the anti-dumping tax is 27.3%-64.9%, and the countervailing duty is 0-11.5%.

Subsequently, on January 23, 2014, the United States announced that it would conduct a second "double reversal" of China's photovoltaic products. Until December 16 last year, the second “double reverse” final ruling identified that China’s crystalline silicon photovoltaic products sold in the United States had dumping and subsidies. In January this year, the United States began to impose “dual” tariffs on this.

Photovoltaic "double reverse" has great influence on Chinese enterprises. According to statistics from the Electrical and Mechanical Chamber of Commerce, after the first “double reverse”, China’s exports to the United States in 2012 were only US$1.402 billion, a decrease of 42.75%. After the second “double counter” preliminary cut, the volume of exports to the United States dropped by 65.9%. After the “double reverse” impact of the EU and the United States, some domestic PV companies with single exports, small scale, and relatively backward production capacity have closed down.

It is worth noting that the solution previously agreed between the European Commission and Chinese PV manufacturers will expire in December of this year. The European Photovoltaic Manufacturers Association stated that it will seek extension before it expires. The Association’s “Expiration Review” The request may begin in September this year.

This time, the “double counter” opportunity in Europe is greater than the challenge. According to the analysis of Meng Xianqi, the secretary-general of the China Renewable Energy Society, this “double counter” is just a continuation of the “double counter” in Europe and America. China's photovoltaic industry accounts for 70% of the world's market share, and its market competitiveness has been increasing, while European and American companies have a weak market share. The inherent prejudice against China and the continuing Cold War mentality also led to the lack of recognition of Europe and the United States for China's photovoltaic industry. The EU has once again set off a "double opposition". On the one hand, it proves that China's photovoltaic industry has strong competitiveness in the international market. On the other hand, it also reflects the decline in the overall strength of European photovoltaic companies.

Facing the EU's “double counter” complaint, Fan Zhenhua, chief legal officer of Yingli Green Energy, said in an interview with the Beijing Commercial Daily reporter that the company has obtained relevant news through the media, but the current “double reaction” has not been implemented in concrete terms. Photovoltaic companies, from the public information point of view, the behavior of Chinese companies is not illegal, the European Association’s accusations may be only one of the measures to build momentum.

This "double opposition" is not a bad thing for the Chinese photovoltaic industry. China's photovoltaic industry can use this to strengthen self-discipline and enhance its international competition and cooperation strategy. Enterprises can not only enhance their core competitiveness but also enhance the cohesion of the industry at the same time when they work together. This "double opposition" is a challenge and an opportunity for the Chinese photovoltaic industry.