Chinese solar panels are now free from anti-dumping and anti-subsidy measures put in place by the European Union (EU).

After considering the needs of both producers and those using or importing solar panels, the Commission decided it was in the best interests of the EU as a whole to let the measures lapse. This decision also considers the EU’s new renewable energy targets.

The EU first imposed definitive anti-dumping and anti-subsidy measures in December 2013 for a period of two years. These were then renewed in March 2017 for a period of 18 months only, as opposed to the usual five years.

In its March 2017 decision, the European Commission aimed to find a balance between the interests of users, importers and EU producers of solar panels. The European Commission also wanted to ensure that EU consumers could buy panels at prices close to the world-market level.

After consultation with member states, the European Commission decided – exceptionally – to extend measures for 18 months as a compromise between the competing interests. The level of the measures has gradually decreased over time to allow the prices of the imports into the EU to align progressively with world market prices.

The European Commission observed that the market situation has not changed to the extent that this would justify a further extension of the measures now beyond the scheduled 18 months. It therefore rejected the EU industry’s request for an expiry review investigation.

This is good news for Chinese solar component manufacturers in light of India’s decision to levy 25 percent safeguard duty on solar modules and cells exported from China and Malaysia. While one market has toughened up its stance, another one has just opened its markets for the Chinese commodities.

However, another major global player, the United States, has announced a 25 percent additional tariff on the import of 279 Chinese products, worth approximately $16 billion. Among these products, solar cells and modules are included under the category “diodes for semiconductor devices, other than light-emitting diodes.”