German Chancellor Angela Merkel's agreement with Chinese Premier Wen Jiabao's opposition to trade protectionism implies that she may attempt to dissuade the EU Commission from launching an anti-dumping investigation against solar products imported from China,according to Taiwan-based solar makers.
Even if Merkel is unable to prevent the investigation,she will have influence over any sanctions imposed since political factors cannot be ruled out,the sources said.
Nevertheless,market observers still believe there is a high chance for the European Commission to begin such investigations against China-based firms.
The solar market believes the possible anti-dumping and anti-subsidy investigation in Europe against China-based solar firms will create a significant negative impact because unlike the investigation in the US,the possible punitive duties from the European investigation may target solar wafer,cell and modules.
The punitive tariffs on solar cells from the US investigation have been seen as ineffective in curbing solar product imports from China because the tariff is targeted on solar cells only.China-based solar firms have the strongest competitive advantages in producing solar modules.
Europe accounts for 60%of the global solar market and 70%of total China-made solar module exports.In addition,if the investigation in Europe takes place,there will be a period of 15 months before the announcement of investigation results.During the 15-month period,China-based solar firms have to decide to adjust production location or to continue with their current business models.
