The EU has opened an anti-dumping investigation into Chinese-manufactured glass for solar panels, broadening a trade fight with Beijing over renewable energy.
The European Commission, the EU's executive arm, opened the probe in response to a complaint filed in early February by a coalition of EU manufacturers known as EU ProSun Glass.
The companies accused their Chinese rivals of benefiting from improper government subsidies, which allowed them to sell their goods below cost in the EU market. They are seeking duties of more than 100 per cent.
Europe's solar glass market only amounts to about €200m, making the case a relatively small one. Yet it comes amid an EU investigation into imported Chinese solar panels that is the bloc's biggest ever – covering some €21bn in goods in 2011 – and has upset Brussels-Beijing relations.
That case has also stirred a wider debate about the merits of imposing higher duties on Chinese imports, even if abuses are found. The European retailers that install solar panels argue that such a move would backfire by raising prices for consumers and forcing them to cut jobs.
The commission declined to comment on the latest case. Under EU rules, its investigation could take up to 15 months.
Solar glass is a thin film just a few millimetres thick that covers rows of solar cells. It requires higher levels of purity than typical window glass.
The case is being spearheaded by InterFloat, a Liechtenstein company that opened a German plant in 2008. It claims Chinese competitors have more than tripled their share of the EU market to 27 per cent since 2010 by selling their glass at less than half the break-even point for European companies.
EU ProSun Glass believes the lower prices were enabled, in part, by the provision of subsidised electricity, which accounts for about one-third of solar glass production costs. Its members are expected to expand the complaint to include allegations of illegal subsidies.
