China's PV companies seek new markets

EU members are set to vote on an anti-dumping and anti-subsidy case regarding China's photovoltaic products on Friday. The results are expected to be released early next month. Regardless of the results, many specualte that China's PV industry will be affected, as Europe once took in 80 percent of its exports. How will China's PV corporations face up to the challenge?

Share prices for China's PV companies are skyrocketing. It's hard to believe that China's PV industry is set to face a trade showdown with its largest export market --- Europe.The reason -- a change in strategy.

Yang Xiaozhong, vice president, Trina Solar, said:" We have been seeking new markets outside Europe. The goal is to balance our market distribution around the globe, to make it more well-proportioned. This way, we are able to meet any possible challenges.

The shift has resulted in a year-on-year decline in exports to Europe, falling to 45.1%.

But despite the optimism, the impact of a potential trade-war can not be overlooked.

Fan, Zhenhua, legal director, Yingli Group, said:"For those whose major markets are in Europe, exports may slip down a lot. This has a direct impact on China's PV industry. For some corporations, it can be fatal."

Experts say the whole global PV industry is now in a jam. Decreasing supplies of raw materials, the adjustment of industrial structures and the impact of the global financial crisis has all added to the gloom.

EU countries are trying to impose a punitive tariff on China's solar products. Some are calling the move a bad idea, considering the uncertain backdrop.

Yang Xiaozhong said:"China's products are high-quality products with a reasonable price. A higher tariff on China's PV products will result in a price hike of solar panels produced in Europe. And this will not help it to achieve its goal of fair price electricity. "

Some one thousand European companies have requested the EU committee to drop its move to impose tariffs.But many China's PV companies are already looking beyond Europe, regardless of what they decide to do on Friday.