China's PV sector braces for EU tariffs

The European Union is set to impose provisional anti-dumping duties on Chinese photovoltaic imports, from June the 6th. The tariffs are expected to average 47 percent. Chinese PV industries are now taking action to minimize the impact.

China's Photovoltaic industry was once a lucrative sector of the new energy industry. The provisional EU ruling is now prompting the remaining competitive enterprises in China's PV sector to face its latest challenge.

Wang Yiyu, Chief Strategy Officer of Yingli Green Energy, Hebei Province, said, "It will definitely have a huge impact on the market in the short term, as Europe is a large market for us. The EU ruling will push prices up and dissolve a large market proportion. But what's key is that we are developing new business models in Europe and developing new markets in China, the US, Japan, Africa and South America, to spread the risk. Also we have to accelerate the process of moving factories out of China to avoid anti-dumping and anti-subsidy charges."

China's PV industry is just one link in the industry's overall chain. It heavily relies on imports of raw materials and equipment and its main customer base is based in the US and Europe. So how can the anti-dumping charge actually benefit China's PV industry and avoid damaging the needs of its customers.

Enterprises in the PV sector, both in China and in Europe, are not ready to throw in the towel.

The Alliance for Affordable Solar Energy, a coalition of more than 500 companies in Europe's photovoltaic industry, has launched campaigns and submitted an open letter to the EU trade Commissioner.

"It would huge undergo for the EU in terms of green growth…" Said Howard Johns, Founder and MD of Southern Solar, UK.

Yingli Green Energy is one of the biggest solar panel producers and exporters in China. Although it's in off season now, inside its plant in Baoding in Hebei province, most of the machines are still running. Encouraging words hang above the office, and the staff here know that challenging times lie ahead.