EU slaps tariffs on China's solar glass makers

The European Union has imposed five-year tariffs on solar glass from China to help EU producers counter alleged Chinese subsidies and price-undercutting, heightening trade tensions over renewable energy.

The duties as high as 36.1 per cent punish Chinese exporters such as Xinyi PV Products (Anhui) and Zhejiang Jiafu Glass for receiving trade-distorting government aid and selling solar glass in the EU below cost, a practice known as dumping. The glass is used in solar panels, which are themselves the target of European anti-subsidy and anti-dumping levies against China.

EU solar-glass producers such as Glasmanufaktur Brandenburg suffered "material injury" as a result of subsidised and dumped imports from China, the European Commission - the bloc's executive arm - said yesterday. The five-year duties will take effect from today.

The duties are the outcome of investigations that the commission opened early last year. Chinese exporters increased their share of the €200 million (HK$2.13 billion) EU solar-glass market to 30.5 per cent in 2012 from 7.2 per cent in 2009, the commission said yesterday.

The five-year anti-dumping levies range from 0.4 per cent to 36.1 per cent, depending on the Chinese exporter. Xinyi PV Products faces the maximum rate.

The five-year anti-subsidy levies range from 3.2 per cent to 17.1 per cent, with Xinyi PV also facing the minimum rate.