China & EU to hold talks on solar disputes

The European Commission's top trade chief Karel de Gucht is scheduled to attend the EU-China Joint Economic and Trade Committee meeting in Beijing this Friday. This comes as the two sides are struggling to resolve their differences not only over solar panels but in other sectors as well.

It's probably the world's biggest trade friction ever. The tensions between the European Union and China over lots of things - from solar panels to expensive wine - is risking to escalate into a trade war.

That's why both sides have no choice but to sit down at the negotiating table, and the EU's Trade Commissioner, Karel de Gucht, is heading to Beijing later this week to discuss the anti-dumping duty on Chinese solar products.

John Clancy, Spokesman of European Commission, said, "solar friction will not discuss in the meeting, but the commissioner is likely to discuss this with his counterpart."

Meanwhile, a close-door negotiation is also underway in Brussels. Officials from the two sides are undertaking efforts to try and find solutions. China has launched a probe into imports of EU wines and chemicals amid accusations it is dumping goods. The EU in the meantime has threatened an investigation into the country's telecom firms.

Roberto Bruni, Managing Partner of EU Matrix Int'l Trade Advisors, said, "neither China nor EU will benefit from trade war --- e.g. Germany --- there will be many negotiations around the dispute."

The EU started to impose a nearly 12 percent anti-dumping duty on Chinese solar products from June 4. If the two sides can't find a way out in two months time, the duty will rise by around 50 percent from August.

The tit-for-tat trade measures between the two sides have triggered concerns over the repercussions they might cause to broader business relations.