EU nations back off from punitive solar panel duties
Fear of Beijing's retaliation sparks opposition to plan for 50 per cent tariff on Chinese products
Shares in Chinese solar panels and parts makers rose after a survey showed that most European Union nations were opposed to Brussels's plan to impose punitive import duties averaging almost 50 per cent on mainland solar power products.
Reuters quoted diplomats as saying that fears over reprisals from Beijing and a potential loss of business have led Germany, Britain, and the Netherlands and at least 12 others among the EU's 27 member nations to oppose the duties.
Industry people expect Beijing to roll out preferential tariffs for solar power generators to boost domestic demand to support panel makers if Brussels agrees to the duties, a decision expected on June 6.
Liu Hongwei, chairman of the solar farms installer China Singyes Solar Technologies, said: "Beijing will surely protect the domestic industry, where 200 billion yuan [HK$251 billion] has been invested."
Frank Haugwitz, founder of the Hong Kong-based industry consulting firm Asia Europe Clean Energy (Solar) Advisory, said he expected Beijing to unveil preferential tariffs for domestic solar power production after June 6, to fine-tune its policy depending on the level of the duties.
Shares of Hong Kong-listed solar products makers rose between 0.6 per cent and 2.5 per cent yesterday. Last September the European Commission launched an investigation into alleged "dumping" of solar panels and parts by China's producers at below-market prices and in quantities that have purportedly hurt the European industry.