Can China's PV hold the European market?

The Sino-European photovoltaic (PV) trade dispute, which has lasted nearly two years, is finally showing signs of resolution. In a bid to ease tensions and move toward a more stable relationship, EU Trade Commissioner Cecilia Malmström (previously De Gucht) and Chinese Commerce Minister Gao Hucheng attended the annual China-EU Economic and Trade Mixed Commission meeting. Gao emphasized that both China and the EU have shown a strong willingness and sincerity to resolve the PV dispute through price commitment negotiations. Malmström also expressed the European side’s desire for a friendly and sustainable solution. She told reporters that an agreement on the PV framework had been reached, but technical details still needed further discussion. However, she expressed confidence that these issues would be resolved within the next few weeks. This development has sparked hope among Chinese PV companies, many of which have faced a harsh "winter" due to the ongoing trade conflict. The industry now looks forward to a potential thaw in relations with Europe, which could open up new opportunities for exports. But can this agreement truly save the European market? Price commitments, as defined by WTO rules, involve exporters agreeing to raise their export prices or limit quantities to avoid anti-dumping duties. This approach has been used before, such as in cases involving color TVs and magnesia bricks in the 1990s. In the current PV case, China has agreed to set a minimum export price for its products and limit annual exports to Europe. In return, the EU will not impose anti-dumping duties. This marks a major shift after the EU previously imposed a 11.8% anti-dumping tax on Chinese PV products, which could have risen to 47%. Zhejiang Dazhan Photovoltaic's General Manager Xu Hui said the company is determined to retain its European market and hopes for a final agreement. “We don’t want to give up Europe,” he said. “Our experience shows that the European market welcomes Chinese PV products.” However, he stressed that the final price threshold will be crucial. If it's too high, it could make Chinese products uncompetitive. An insider revealed that while China submitted a price commitment plan, the EU has taken a negative stance, indicating it may not accept the proposed terms. If the EU sets a minimum price of 1 Euro/W, it would be significantly higher than the current average of 0.4–0.6 Euro/W. Such a move could hurt China’s competitiveness in Europe. “If the price is too high, we’d rather lose the market,” the insider added. Keeping the market is seen as essential for survival. Zhou Dewen, deputy director of the Democratic Progressive Committee and chairman of the Wenzhou SME Development Promotion Association, stressed the importance of retaining the European market. “There is a market to have the chance to survive and compete,” he said. He admitted that price commitments mean significant concessions for Chinese companies, potentially costing them around 30% of their profits. But in the current climate, survival is the top priority. “It’s a big sacrifice, but it’s worth it to keep the market.” For China, losing the price advantage is painful, but in a tough global market, keeping the European market is a realistic choice. As one European buyer joked: “We need your PV products, but we don’t have money—maybe you should just donate some.” Despite the challenges, there is still hope. Zhou Dewen warned that if the price commitment is not handled carefully, companies might end up losing actual benefits without gaining much in return. However, he believes that a negotiated settlement is better than a trade war. He also emphasized the need for a strong tripartite mechanism involving the government, businesses, and associations to ensure effective negotiation strategies. “The next two months are critical,” he said. Prime Minister Li Keqiang has also expressed support for the negotiations, saying that while progress has been made, the talks are not over. “We firmly oppose trade protectionism and hope companies can survive the next two months,” he said. For now, Chinese PV companies continue to face daily struggles. Xu Hui described the situation as “bad,” “painful,” and “difficult.” Her company has had to stop production due to financial pressures, including excessive investment, broken capital chains, and rising debt. She also mentioned the challenges of dealing with lawsuits and heavy debt. “Responsible companies are very difficult,” she said. Looking ahead, Xu Hui is focusing on new investments, such as LED energy-saving lamps. She hopes the government will provide more support, allowing her company to survive and possibly thrive in 2015. Zhou Dewen agrees that the PV industry is in a tough spot, caught between tight bank lending and foreign trade barriers. He calls it a time of “internal and diplomatic difficulties.” To survive, he urges the government to provide subsidies and support to prevent the industry from collapsing. At the same time, he encourages exploring new markets, such as Australia, New Zealand, and South America, as well as expanding domestic demand. He also highlighted the upcoming “Renewable Energy Heating Implementation Plan,” which aims to increase solar thermal power usage and create new opportunities for the PV industry. Despite the pain, there is still a way out. With patience, strategy, and support, the Chinese PV industry may yet find its path forward.

Spring Lock Washers

Lock Washer Types,Conical Spring Washer,Spring Washer Use,Spring Washer Types

Kunshan Zhonggu Precision Hardware Co., Ltd. , https://www.zgfastener.com