EU ProSun claims China PV glut sparks 'massive cheating' on exports

Cuts in support for China's PV installations have led to a new global glut in panels offered by Chinese companies below production prices that are seriously violating European anti-dumping measures, lobbying group EU ProSun claimed. 

"There is massive cheating and wangling to circumvent anti-dumping requirements," EU ProSun president Milan Nitzschke said.

Nitzschke, who is also vice president of German PV manufacturer SolarWorld, called upon EU trade ministers meeting in Bratislava, Slovakia, today and tomorrow to sharpen their instruments against illegal dumping. "Markets only function with clear rules."

SolarWorld yesterday acknowledged it will cut 500 outsourced temp jobs in Germany, and claimed it has to do so because renewed Chinese dumping forces it to reduce its own output.

EU ProSun with the support from SolarWorld for years has been on a campaign against Chinese dumping, but Europe's solar sector is divided about how to tackle the issue.

While the few remaining manufacturers side with EU Pro Sun, solar developers, machinery makers, installers and two industry lobbying groups (SAFE and SolarPower Europe) oppose action against Chinese manufacturers. They argue cheaper panel prices are better to foster European solar jobs across all sectors of the solar industry as a whole.

Chinese production alone could cover global demand in solar panels 1.3 times over, Nitzschke said. But instead of reducing over capacities, China recently has abruptly cut its own support for domestic PV additions and thus triggered the current over supply, he claimed.

"China doesn't comply with international rules, intentionally subsidises over capacities, supports dumping, and exports its unemployment to other parts of the world. These days, this has cost several hundred jobs in the German solar industry once again."

The European Commission until early 2017 is reviewing its current anti-dumping measures and minimum import prices for Chinese PV kit.