Chinese solar firms protest over EU duties
Heavy blow
The punitive duties, if imposed, could deal a heavy blow to China's already struggling PV industry as it relies on the European market, said Zhang Qian, government relations and business development director at Canadian Solar Inc.
China's PV exports to Europe slumped 45.1 percent year on year to $11.2 billion in 2012, but the value still accounted for nearly half of the country's total shipments, according to statistics from the chamber.
China's PV industry has boomed over the past decade, but is now struggling with excess capacity and weak market demand that has forced some small firms out of business and even put some giants on the brink of bankruptcy.
Worse still, leading solar panel maker Wuxi Suntech, a major subsidiary of the New York-listed Suntech Power based in the eastern Chinese city of Wuxi, declared bankruptcy in March.
China-made PV products would completely lose price competitiveness and EU's orders would be awarded to solar firms from Europe, the United States and even Taiwan, said Hou Wentao, an analyst with Guotai Junan Securities.
China might increase domestic solar panel installations to help the industry hedge against the slumps in exports to Europe, added Hou.
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