China Slaps Duties on EU Polysilicon

The Chinese Ministry of Commerce (MOFCOM) at the end of April confirmed final anti-dumping and anti-subsidy duties on imports of solar-grade polysilicon from the EU, a raw material used in the manufacturing of solar panels.

Following an investigation launched in November 2012, the ministry said that a causal relationship had been found between the alleged EU dumping and subsidies, and the material injury suffered by China’s domestic producers. The EU’s exports of polysilicon to China were valued at €700 million in 2011, according to the European Commission.

MOFCOM’s statement indicated that one German company, Wacker Chemie AG, will be exempt from the measures due to its previous “price commitment.” The world’s second largest polysilicon maker reached a price undertaking deal with Beijing in March, pledging to not sell the solar material on the Chinese market below a set minimum price.

At that time, the Commission indicated that Wacker Chemie AG accounts for a significant part of EU polysilicon exports to China.

According to Reuters, however, the measures will affect other German, Italian, and Spanish companies such as Schmid Group, Joint Solar Silicon, MEMC Electronic Materials SpA, and Siliken Spain. Anti-dumping duties are set at a whopping 42 percent, and were imposed on 1 May for a period of two years. Anti-subsidy duties are set at 1.2 percent.

Renewables horse trade

The move joins a list of separate solar spats between Brussels and Beijing, as well as other capitals. After a sour stand-off, the EU and China struck a deal last year effectively exempting Chinese solar panel manufacturers from heavy anti-dumping and anti-subsidy duties, specifically by having them agree to a price undertaking arrangement.

In April, the EU’s 28 member states also reportedly backed the imposition of definitive anti-dumping and anti-subsidy duties on Chinese imports of solar glass, also used in the manufacturing of solar panels, a year after the Commission launched two separate investigations into the allegedly unfair trade practices.

For its part, in January, China imposed final anti-dumping duties on South Korean and US polysilicon, also inflicting anti-subsidy duties on the latter. These have both been provisionally in place since last year. Washington has its own complaints about Chinese support for its solar industry, as well as other green energy sources such as wind-power. 

The history of renewable energy trade irritants comes even as a group of 14 WTO members – including the EU, US, China, and South Korea – are engaged in talks to launch negotiations towards a trade deal that would slash tariffs on an agreed-upon list of environment-friendly products. Announced this year on the sidelines of the World Economic Forum in Davos, Switzerland, participants are working through their respective domestic procedures before beginning formal talks.