China-EU Solar Trade Dispute Raises Concerns over Bilateral Ties and Renewable Energy Goals

Growing Tensions: EU’s Measures Against Chinese Solar Imports

In a move that could strain Sino-European Union (EU) ties, the European Union is considering emergency measures, including an antidumping probe, to support its solar panel manufacturing sector. The EU is responding to concerns about the influx of inexpensive Chinese solar imports, leading to factory closures and heightened competition.

Industry Woes and Calls for Action

Recent weeks witnessed the closure of four European solar factories, with more under the threat of shutting down due to increased competition from China. The European Solar Manufacturing Council issued warnings, urging swift actions to counter the perceived “Chinese threat” and prevent the potential closure of most European manufacturers within three months.

Impact on Renewable Energy Goals

Europe, aiming for 45 percent of energy from renewables by 2030, faces a setback if trade protection measures are implemented. The EU’s move raises doubts about the smooth development of Sino-EU economic and trade relations and could jeopardize the bloc’s ambitious climate goals.

China’s Dominance in the Solar Supply Chain

China holds a dominant position in the global solar energy supply chain, producing over 90 percent of silicon wafers for solar panels and more than three-quarters of the world’s solar panels. Any trade protectionist measures targeting Chinese producers may disrupt the market, considering China’s competitiveness in both price and quality.

Calls for Negotiation and Collaboration

Stakeholders emphasize the need for negotiations between China and the EU to resolve the solar panel dispute. Amid the global push for an open, fair, and nondiscriminatory business environment, erecting trade barriers could undermine joint efforts to address climate change—a core aspect of the China-EU strategic partnership. A collaborative approach aligning with World Trade Organization rules is urged to maintain a balanced and constructive relationship.

Source:chinadaily.com.cn

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