Anti-dumping penalty to hurt EU economy

Analysts say Brussels' anti-dumping efforts on China's PV sectors may also lead to job losses in the EU and tarnish its reputation of being a global leader in coping with climate change, protecting the environment and promoting clean energy.

Chinese companies are the main suppliers of solar panels in several key European markets such as Germany, Italy, France, Spain, the UK and Greece. While Chinese exporters have localized their businesses in Europe and created jobs in sales and technical support, the lower chain in solar park construction and electricity supply has offered even more jobs to Europeans.

According to industry estimates, for every job created in manufacturing and sales, Chinese companies are also adding two or three jobs in the lower chain. At Trina Solar's European headquarters, only two of its 54 employees are from China.

China's top solar manufacturer Suntech has its European headquarters in Schaffhausen, Switzerland, a 20-minute ride from the Germany-Switzerland border. To cope with Brussels' anti-dumping investigation, Suntech is leading the role of lobbying and also thinking of outsourcing its manufacturing outside China.

"We acknowledge the allegations that were against the Chinese PV industry as a whole," says Pawel Nowotny, Suntech's European marketing director.

Nowotny says his company is one of the sample companies that represent the biggest market player, in this case the Chinese PV industry. "We are working closely with the European Commission and also the Chinese authorities to comply with the investigation routines, and be as transparent as possible.

"We are confident that we would not be found guilty as we don't have anything to hide. We will extend our full support to the probe," he says.

Apart from that, being a global company with multiple sourcing possibilities, Nowotny says: "We are still optimistic that at the end of the day, we will have the means to still do business with European customers.

"At the same time, we are also prepared for the eventuality that we may lose substantial business in Europe if the verdict goes against us."

Suntech believes that Europe will continue to play a leading role in its market operations, but is also looking at other areas such as Israel, South Africa and South America.

Bjorn Emde, media manager for Suntech in Europe, says that Chinese solar companies have played a significant role in adding jobs in Europe.

"The ability of the Chinese companies to create downstream jobs is what we have been highlighting to the EU policymakers," Emde says, adding that most of Suntech's upstream suppliers are key players from the European machinery, raw material and parts sectors.