The European Commission on December 2nd announced the decision by the EU to impose anti-dumping tariff on Chinese PV panel exporters for two years starting December 6th. The tariff is only to be applied to Chinese PV manufacturers who refused to sign the agreement of minimum price and volume limit. The manufacturers who fall in this category make up around 30 percent of PV panel exporters. 

Imposing the anti-dumping tariff on Chinese PV manufacturers who did not participate in the price agreement by the EU insinuates that these companies will recede from the European market, said Bai Ming, deputy director of the Department of International Market Research at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce. 

”In order for manufacturers who did not participate in the price agreement to reduce the impact of the tariff, they must speed up domestic market expansion as well as develop other foreign markets. The tariff set off warning alarms for Chinese PV manufactures that poor technology and low added product value have no future and that domestic PV manufacturers must increase additional product value and technology to avoid price competition and reduce the effects from anti-dumping tariff,” said Bai Ming. 

The EU and China reached an agreement in July in which the EU put a cap on the minimum price and volume of Chinese PV panel imports. However, a small percentage of Chinese manufacturers refused to participate. Many EU member countries, especially Germany, did not wish for the PV module trade dispute between the EU and China to escalate. 

The 28 member countries of the EU will reconvene on May 27th 2014 to vote again on the anti-dumping tariff to decide whether or not to extend it to five years.