China rails against dumping charges filed in the EU

China is loudly criticizing a complaint filed with the European Commission seeking import tariffs on Chinese-made solar products.

European solar panel makers that are members of EU ProSun, a coalition of some 20 European solar companies that filed the complaint, claim the European solar sector is being decimated by unfair competition from China.

"EU manufacturers have the world's best solar technologies but are beaten in their home market due to illegal dumping of Chinese solar products below their cost of production," the group said in a statement.

EU ProSun said Chinese companies have taken over 80% of the EU market for solar products from virtually nothing only a few years ago.

The Chinese Ministry of Commerce, however, called the solar dumping allegations groundless.

"Thanks to low prices of raw materials and technological progress, Chinese solar products are more price competitive than European Union ones. That's not dumping, as accused by some European companies,” said the Ministry.

ProSun warned China that major trade defense measures in the EU were likely, especially since Chinese exports could be diverted to the European Union as a result of the U.S. government's recent determination that 12 categories of Chinese subsidies for its solar manufacturers were illegal. The U.S. also said that Chinese exporters dumped solar cells at margins between 30% and 250%.

"The EU should be very clear that any kind of limit on market liberalization may destroy the balanced development of the photovoltaic industry, hinder energy reform and undermine global efforts to fulfill long-term energy-saving and emissions-reduction goals," the statement said.