It is imperative for the Chinese side to "play" in the solar game.

Abstract The second round of price negotiations on photovoltaics has begun. After the 27th China-EU Economic and Trade Mixed Commission on Friday, EU Trade Commissioner De Gucht revealed that China and the EU have reached an agreement on the resolution of the price commitment. The EU representatives are currently working with the Chinese Ministry of Commerce and China. Electromechanical...
The second round of price negotiations on the photovoltaic case has started. After the 27th China-EU Economic and Trade Mixed Commission on Friday, EU Trade Commissioner De Gucht revealed that China and the EU have reached an agreement on the resolution of the price commitment. The EU representatives are currently working with the Chinese Ministry of Commerce and China. The Chamber of Commerce for Import and Export of Machinery and Electronics will negotiate on specific technical issues. The Chinese side also stated that the current technical negotiations are positive. It is hoped that in the next consultations, we will strive to reach an agreement on price commitments that are balanced in interests, reasonable and compliant, and acceptable to both parties.

However, “positive” does not mean that the Sino-European PV dispute will be optimistic in the future. The Sino-European trade friction case, which has the largest amount of money involved so far, has evolved into a game between the two sides in the entire economic and trade field. In the remaining one-month buffer period, whether or not an agreement can be reached determines whether the Chinese PV companies can hold the average high tax rate of 47.6% hanging overhead.

This is undoubtedly a hard battle. First of all, from a technical point of view, there are many disputes between the two sides. Even in the framework of the big plan of price commitment, there are still many details involved. Specifically, the price commitment includes price, quantity, price + quantity. The European side wants to set limits on price and quantity, and we are not willing to talk about the quantity limit. In addition, the specific extent of the price increase and the base period of the price increase must be agreed. In this process, the interests of hundreds of large and small PV companies in China should be coordinated, the interests of China and the EU should be coordinated, and operational feasibility should be considered. The difficulty can be imagined in the next 40 days.

This is not the main thing. The hard-line attitude of the European Commission and the determination to be sure will be the biggest obstacle in the consultations. It can be said that the European Commission’s bet under this round is too big. The defeat in the voting of the member states before the preliminary ruling, and the counter-measure of the Chinese wine against the double-reverse of the European wine, made the European Commission feel disfigured. In order to save face, and to ensure the independence and prestige in the EU countries, the European Commission also promotes a series of more complicated action plans such as the investigation of China's communications equipment. It is the real purpose of raising the asking price through the rubbing case and pointing directly to the core of the Chinese market system. Degucht, who will expire his term next year, will also take the hard line against China in order to gain personal capital. The success or failure of his plans for photovoltaic taxation may directly affect his career. Judging from this, in the next negotiation, it is unlikely that the European Commission will make a big concession.

In addition, there are still different opinions within the EU. Although 18 members chose to oppose taxation in the pre-primary vote, most of the member states want to stand on the side of the European Commission to pressure China to benefit from future market opening, and do not want to offend China and its related Enterprises in the industrial chain hope to benefit from trade investment in China. This kind of swing mentality can be seen from the twists and turns in the previous vote. In the future voting on the anti-subsidy preliminary ruling and the final anti-dumping ruling, how these countries "stand in the queue" is still uncertain.

The sledgehammer of the EU trade protection has been lifted, but it has not yet reached the finale. At present, the situation is urgent and not optimistic. In a limited time, we still have to play the cards in the hands as soon as possible, in the automotive, polysilicon, steel and other fields, and in a reasonable and positive direction, and timely consider the EU’s unreasonable practices to appeal to the WTO in order to win in the photovoltaic The best possible result in the contest.

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