This landmark decision should help stem the flow of solar panels funded by the Chinese state and arriving in Europe. EU ProSun is nevertheless critical of the system of minimum prices established by the settlement agreement concluded between the European Union. On the other hand, China expects the European Court of Justice declares it null and void. This defense of the European market was imposed following a complaint from EU ProSun, a group gathering the majority of European manufacturers of solar modules.
Milan Nitzschke, President of EU ProSun, commented on the decision: 'The customs taxes about 48% imposed by the European Union should at least partially compensate for the huge amounts of money invested by the Chinese government to withdraw European solar manufacturers from their own market and break the market itself. It is a conflict between market economies and the largest planned by a state economy. Without these defensive measures, companies are vulnerable to Chinese five-year plans, its illegal subsidies and its dumping strategy' According to the Chinese five-year plans for putting the hand in the global solar industry market has been established overcapacity of production equivalent to double the global demand.
Such market distortions depreciate prices artificially, which means that no company of any country apart from China can operate profitably. China now controls over 80 % of the global and the European solar market, impacting many companies in Europe, the USA, South Korea, and even forcing some of them to cease their activities in the solar sector. Milan Nitzschke goes on to state: 'These tariff on solar are the first glimmer of hope for European companies to return to the market with high quality products.'
Nevertheless, EU ProSun is very critical on minimum prices set on Chinese solar imports: 'The agreed minimum prices with China are far too low and even lower than the real cost of solar manufacturing in China' says Milan Nitzschke. Under a bilateral agreement, the European Union and China, in fact, agreed that the photovoltaic panels sold to a floor price of 0.56 cents would be exempt from anti-dumping measures. European solar companies have also filed a complaint with the European Court of Justice against this illegal agreement.
Milan Nitzschke said: 'We expect the European Court finally declared null and void the system of minimum prices. Then customs duties decided by the European Union shall apply to all Chinese solar imports. The European Court should restore a free and rational market in Europe completely free of subsidies and dumping by the Chinese government'. The amicable agreement on minimum prices does not apply to Chinese companies that violate the floor price of 0.56 cents without selling fees, equivalent to 0.60 cents per watt provided within the EU. Indicators already show that some Chinese companies violate this agreement by selling below the floor price set. These violations could lead to a partial or total cancellation of the agreement between China and the EU. Any breach of the agreed price will lead to the application of customs duties on the products of the respective manufacturers. If serious or numerous violations of the agreement, there will be a full taxation of customs duties.