China is NOT happy – especially as over there the European Union’s decision to impose duties on Chinese solar panel imports, looks like no more than the twitch of a desperate and dying economy whose economic clout has long dissipated.
This is how it works on Planet EU: Countries such as France receive heavy EU agricultural subsidies which enable it to “dump” vast quantities of cheap wine in China. Chinese solar panel manufacturers receive subsidies from heir own government which allow it to dump cheap solar panels in Europe. So what does Europe do? It objects and then imposes import duties on the solar panels. But why?
The EU says that it is to safeguard jobs. Quite right too! Until you realise that the vast majority of EU solar panel manufacturers are in…..Germany!
Not surprisingly, China has retaliated and just announced its own anti-dumping and anti-subsidy investigation into imports of European wine. It is NOT Germany but France and Italy who will suffer.
EU Job protection? Yes – but mostly in Germany.
This is what the Chinese Communist Party’s official mouthpiece, the China People’s Daily says: “Times change and power rises and falls. Still this has not changed the deep-rooted, haughty attitudes of certain Europeans.” ………Bitchy!
China knows that a EU in trouble is a dangerous EU but it is also acutely aware that the EU is punching way above its weight.
The EU-imposed import duties will be a severe blow to Chinese companies such as Trina Solar Ltd, Suntech Power Holdings Co. Ltd. and Yingli Green Energy Holding Co. Ltd. The upshot for Europe will be inflationary with a big increase in solar panel prices.
China’s next likely target ? Probably French-based Airbus manufacturer EADS. That will mean even more headaches for President Hollande because the potential losses to France could be astronomical.
Never mind, as long as the EU continues to protect Germany’s interests.