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No ray of sunshine in solar panel dispute

By Fu Jing | China Daily | Updated: 2013-06-05 08:02

On World Environment Day, which falls on Wednesday, European environmentalists and clean-tech leaders are campaigning a stone's throw away from the European Union headquarters to expand the use of solar power and other alternative energy sources.

However, in the building nearby EU trade officials will most likely be choosing to slam the door on China's multibillion-dollar exports of competitive solar products by exerting an average 47 percent of anti-dumping tariffs on China's solar panel producers.

It is a decision that could trigger a trade war and damage EU-China relations at a time when Beijing's new leadership is seeking to further boost the so-called strategic partnership.

What's more, the EU trade officials will decide in August whether to impose temporary high-rate penalties of anti-subsidy on the same products, and European state leaders will decide in December whether these temporary penalties will be extended to five years.

If introduced, such penalties would do great damage to both European and Chinese businesses, which are closely interlocked into a supply chain because of Europe's encouraging solar power policies in previous years.

After the tariffs are imposed, more than 250,000 European jobs and 400,000 Chinese jobs will be at risk. Some Chinese companies have already chosen to leave the European market because of the mounting uncertainties and started to explore opportunities in other regions.

But the consequences of this decision go beyond economy and trade and may damage the EU's status as a global leader in environmental protection.

Emerging economies, such as China and Brazil, are facing up squarely to the danger of global warming and have shown determination to change their energy supply mix and realize low-carbon economic development through evolution of their development models. But Europe's prolonged wintry weather this year has probably made the decision-makers in Brussels temporarily forget the pressing challenge of global warming. But atmospheric carbon dioxide concentrations have surpassed 400 parts per million, which scientists say should ring alarm bells.

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