(EnergyIndustry.Net, April 06, 2013 ) Compton, CA -- The Chinese have made it clear that they will retaliate if the European Commission is to insist on playing hardball with the country's beleaguered solar industry.
“If the E.U. insists on imposing duty orders on Chinese exports and severely hurts the interests of Chinese manufacturers, the Chinese government will not stand by. We have no choice but take any measure to protect the lawful rights of Chinese businesses,” Chong Quan, deputy international trade representative with the Ministry of Commerce was quoted saying in China Daily today.
“Once again, we call on the E.U. to seriously consider China’s suggestions as well as the appeal from enterprises from the EU’s upstream and downstream solar industry to cautiously use trade remedy measures. We hope the dispute can be resolved through negotiations,” Chong said.
The European Commission is now considering the imposing of trade tariffs on the solar panels to China. For all the subsidies, one of the largest solar panel makers (Suntech) filed for bankruptcy.
Recently SunTech Power went from a $47 stock in 2008 to pennies this year. The company is now looking for protection from its creditors in bankruptcy court within China. The outstanding debt held by the company is nearly $2 billion.
China's state owned banks are owed the bulk of it, with $1.14 billion is in overdue loans to Industrial & Commercial Bank of China, Agricultural Bank and the Bank of China. The company also defaulted on a $541 million United States bond last week.
Now the E.U. Trade dispute regarding the solar company has China up in arms in general. This is a strategic sector within China, and the country's leaders are not interested in seeing it implode. As it is, the bulk of the exports go directly to Europe. The United States landed tariffs on the panels last year. Exports are on the decline as some Euro-governments are now cutting spending. Solar power is not seen as a priority with difficult financial choices having to be made in the states.
The European Commission announced last fall that it will be taking up an investigation of subsidies for Chinese solar panel manufacturers. China is none-too-pleased with the likelihood of an investigation and claims it will play tough if more is to come from the European Commissions threats.