The United States and Europe Union Agreed to Solve the " Anti-dumping and Anti-subsidy " at the Premise of Raising Price for Chinese Products

On Monday, the New York Times said that, quoting the Chinese, the U.S. and the EU trade Officials’ words, the Obama administration and the European Union have decided to resolve through consultations with China on the offering 30 billion dollars subsidy to annual exports to the West solar panel industry, which may be the world's largest anti-dumping and countervailing duty cases on the controversy.

Sources pointed out that the emerging scenarios may change the global solar panel market structure and form a series of regional markets. Consultations may result in the shape rise of Chinese solar panel export prices and Chinese manufacturers which take dominance market share may be required to limit the export scale and to raise the price at the same time.

In exchange, China's solar industry companies will no longer be subject to additional tariffs. America has started to imposed about 30 percent punitive tariffs on China's exports; European Union is also developing plans which may begin from June 5, regards up to 50% punitive tariffs on China's export of solar products back to March 5.

However, a higher selling price to the respective markets as required by the U.S. government and the EU will not be welcomed by environmentalists. Some environmental groups have already expressed disappointment to the higher tariffs, which would lead to higher costs of solar energy, be more difficult to afford and less competitive compared to the less environment-friendly fossil fuel.

Over the past four years, a large number of solar panels and related products from China led to three quarters prices drop. The U.S. and European manufacturers thought that this price advantage came from Chinese government subsidies and accused China for dumping solar panels to the Western countries at below price. This means that any outcome of the consultations would lead a large extent prices raising of the related solar products.

The sources said that the U.S. Department of Commerce Assistant Secretary for International Trade Francisco Sanchez has arrived in Beijing on Monday for a visit without prior announcement. Another source said he would propose a series of requirements towards the interests of the United States during the visit, hoping to solve a large number of bilateral trade issues. However, the Ministry of Commerce refused to make an explanation of Francisco Sanchez’s stance and demands for the solar panel industry during this visit.