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International sanctions overlap, China's photovoltaic industry is hit hard again
The European Commission has announced that starting March 6, it will implement import registration for photovoltaic products manufactured in China. Additionally, the EU has initiated an anti-dumping investigation into Chinese photovoltaic cells and glass, which could further strain the already challenged Chinese solar industry. This new development may bring about "new injuries" for Chinese PV companies, adding to the existing trade barriers they face.
Earlier this year, the European Commission had already launched an anti-dumping probe on solar glass imported from China. The latest trade restrictions are expected to act as a significant "barrier" for Chinese goods entering the European market, making it more difficult for local manufacturers to compete.
In 2012, China's PV industry was already under pressure from anti-dumping and countervailing duties imposed by the U.S., the EU, and India. Notably, the EU's "double investigation" on Chinese solar panels involved over 21 billion euros in affected value, putting substantial pressure on China's exports and domestic manufacturers.
He Zhaoxi, manager of the domestic business department at Guangdong Baowei New Energy Co., Ltd., noted that the anti-dumping investigation on photovoltaic glass could have a more severe impact on the industry. Based on past experiences, product supply often halts during such investigations, causing disruptions in the market.
Industry experts warn that Sino-foreign trade tensions are escalating, and businesses should remain vigilant. Currently, over half of global countervailing measures target China, with 70% of U.S. countervailing actions directed at the country. Trade protectionism is becoming increasingly evident, and the EU’s recent trade investigations may not be the end of the story. Chinese companies must stay alert to the growing trend of international trade protectionism.
According to data from Zhuo Chuang Information, China exported 644 million euros worth of photovoltaic glass in 2012, with 54 million euros going to the EU—accounting for approximately 8.3% of total exports.
Many Chinese PV companies are now adjusting their strategies in response to these challenges. Yao Wenjie, technical director at Dongguan CSG Photovoltaic Technology Co., Ltd., mentioned that even though the EU's preliminary decision on its "double investigation" on Chinese PV modules had not been made last year, the pessimistic outlook led to about half of the company’s European customers withdrawing. Currently, only 30-40% of orders come from the European market.
As trade disputes continue to evolve, Chinese firms must adapt quickly and explore new markets to mitigate the risks associated with rising trade barriers.