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International sanctions overlap, China's photovoltaic industry is hit hard again
The European Commission recently announced that starting March 6, it has begun the import registration process for photovoltaic products manufactured in China. Additionally, the EU has initiated an anti-dumping investigation into Chinese photovoltaic cells and glass, potentially adding "new injuries" to the already struggling Chinese solar industry. This development comes as part of a broader pattern of trade tensions between China and the EU.
Earlier this year, the European Commission had already launched an anti-dumping probe on solar glass imported from China. With the new trade restrictions, it's clear that Chinese PV products will face even greater challenges when entering the European market. These measures could act as a significant barrier, limiting market access and increasing costs for Chinese manufacturers.
In 2012, China’s PV industry was already under pressure from anti-dumping and countervailing duties imposed by several countries, including the U.S., the EU, and India. Notably, the EU’s “double anti-dumping†investigation into Chinese solar panels involved over 21 billion euros in potential tariffs, creating substantial financial strain on Chinese companies and affecting global exports.
He Zhaoxi, a manager at Guangdong Baowei New Energy Co., Ltd., noted that the anti-dumping investigation on photovoltaic glass is likely to have a more severe impact on the industry. Based on previous experiences, product supply often halts during such investigations, disrupting production and export schedules.
Industry experts warn that Sino-European trade disputes are intensifying, and this situation should not be overlooked. Currently, more than half of global countervailing measures target China, and 70% of U.S. countervailing actions are also directed at the country. This trend shows a growing inclination toward trade protectionism, which could have long-term implications for Chinese exporters.
The EU’s recent trade investigations may not be the end of the story. Chinese companies must remain vigilant against the spread of international trade protectionism, as similar measures could emerge in other markets.
According to data from Zhuo Chuang Information, China’s total exports of photovoltaic glass reached 644 million euros in 2012, with 54 million euros going to the EU—accounting for about 8.3% of total exports.
Many Chinese PV companies are now reevaluating their business strategies. Yao Wenjie, technical director at Dongguan CSG Photovoltaic Technology Co., Ltd., mentioned that although the EU’s preliminary decision on its “double anti-dumping†investigation into Chinese PV modules was not finalized last year, the uncertainty led many European customers to pull back. As a result, only 30-40% of the company’s current orders come from the European market.