Chinese government responds to EU trade case

03. August 2012 | Markets & Trends, Global PV markets, Trade cases | By:  Jonathan Gifford

The Chinese Ministry of Commerce (MOFCOM) has responded to EU anti-dumping trade case against Chinese photovoltaic manufacturers. MOFCOM has claimed that the aggressive pricing of Chinese modules is a result of cost reductions, economies of scale and low polysilicon prices.

Chinese PV manufacturing facility.

Chinese manufacturing has been able to achieve module price reductions through economies of scale, technological advances and falling polysilicon prices, claims the MOFCOM head.

In response to the recently-filed Sino-E.U. photovoltaic trade case, launched by European manufacturers at the behest of SolarWorld, the Chinese MOFCOM has rejected claims of dumping. In a statement on the MOFCOM website, the head of the ministry has claimed that polysilicon price reductions have driven module price declines.

Noting that polysilicon prices had fallen from close to US$300/kg in 2008 to less than $30/kg at present, the unnamed head of MOFCOM is the driver of "down-going" photovoltaic module prices. In the statement released earlier this week, the head has claimed that large-scale production and the Chinese industry's focus on technological advancement is another factor behind the cost reductions.

Repeating an argument often made by European equipment suppliers, the head also noted that Chinese manufacturers have employed "high-level equipment" from the U.S. and EU to realize these economies of scale. The head also pointed out that downstream industries have been created in the EU on the back of falling photovoltaic module prices.

Urging consultation and cooperation between the EU and China, the MOFCOM head argued that free trade is required for both economies to continue to grow. "We hope the PV industries of the two sides can solve the divergences through consultation, seek win-win paths through cooperation, and together safeguard the sound development environment for the industry," concludes the statement from the MOFCOM head.

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