On November 5, China proposed to cooperate with the EU and its relevant member countries under the WTO dispute settlement mechanism on the PV subsidy measures of some EU member states, and formally initiated the WTO dispute settlement procedure. In the previous week, the Chinese Ministry of Commerce had decided to investigate anti-dumping and countervailing subsidies for solar-grade polycrystalline silicon originating in the European Union.
According to a report in the Securities Times, "The EU's subsidy measures violate the provisions of the WTO Agreement on national treatment and most-favoured-nation treatment, constitute an import substituting subsidy prohibited by the WTO Agreement, and seriously affect the export of China's photovoltaic products, and damage China's membership as a WTO member. "The legitimate rights and interests." Shen Danyang, spokesman for the Ministry of Commerce, said in a statement on this.
From January to September this year, China's cumulative import of polysilicon up to 64,500 tons, an increase of 32.86%, in the face of the raging imports of polysilicon, domestic companies can not resist. According to statistics from the China Non-Ferrous Metals Industry Association, of the 43 polysilicon companies, 80% have stopped production. Zhou Hong, the director of CSG A, confirmed the matter: “At present, the price of imported polysilicon is lower than that of domestic polysilicon, and the lowest price is less than 20 US$/kg, which is obviously lower than its cost. Therefore, there is foreign subsidies and dumping of polysilicon. Now, domestic excess production capacity is very bad. 80%-90% of the production was discontinued.†Zhang Caibo, the witness of Tianwei Change (600550), also stated that the company’s subsidiary, which produces polysilicon, has stopped production. Shen Danyang emphasized in his speech that the Chinese government has the right and responsibility to strive for a fair international trade environment for its photovoltaic companies.
When interviewed by the Securities Times, Zeng Securities researcher Zeng Weiqiang said: “If we do not conduct double investigations and resort to the WTO, there is no better way. EU polysilicon does have government subsidies. In fact, there are dumping actions. The survey is a game played to protect domestic companies when the economy is bad."
In fact, the Chinese anti-double investigation is only a continuation of the photovoltaic trade war in China, the United States, and the European Union in recent years. In May 2012, the US Department of Commerce announced the preliminary results of the anti-dumping duties on China's photovoltaic cells and components, and levied an additional tariff of nearly 35% on domestic photovoltaic companies. This is by far the highest punitive tariff imposed on Chinese companies. In September 2012, the European Commission formally launched the largest anti-dumping investigation on photovoltaic cells in China to date, involving more than US$20 billion.
Once the results of the “anti-dumping†investigation are established, the consequences of the Sino-European PV trade will cause widespread concern in the industry. Polaris solar photovoltaic network related experts told the Securities Times reporter: "There are two possibilities for the outcome. If we succeed, then the EU does not impose high tariffs, but it may set up other obstacles, such as raising the threshold, requiring a certain conversion rate. Or how many EU products account for, etc. If it is not successful, China may lose the European market, and now companies are investing in domestically-produced power stations, also because of this crisis awareness."
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