Commentary: Lessons from EU's restriction on Chinese solar panels

Source: Xinhua| 2018-09-02 04:28:53|Editor: yan
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by Xinhua writer Wang Zichen

BRUSSELS, Sept. 1 (Xinhua) -- The European Commission announced on Friday it would drop punitive measures against solar panels from China, a decision which is welcome but long overdue.

Disregarding the opposition from a majority of the European Union (EU) member states, particularly Germany, the Commission in 2013 imposed tariffs on Chinese solar panels. As a result, EU consumers had to pay a premium over global prices because of the tariffs.

Five years later, the interest of consumers --including importers, installers and users -- prevails, as the Commission said in the Friday statement that it "wanted to ensure that EU consumers could buy panels at prices close to the world-market level".

Higher tariffs create less-obvious losers as well. If solar panels' prices are not attractively low for citizens and businesses to adopt the clean technology, the EU's target to reduce emissions by at least 40 percent by 2030 could be hard to reach.

The latest decision "also takes into account the EU's new renewable energy targets", the Commission said, implying that solar panel manufacturers in China could be of help in this regard.

For years, one of the most overlooked contributions that China has made to the global climate action is bringing down renewable energy prices, and Brussels' decision should also serve as a reminder to Washington and other capitals across the world.

With innovation, hard work and willingness to take risk, Chinese manufacturers have lowered the costs of products from solar panels to electric bikes, thus improving availability and affordability of clean energy for both domestic and international consumers.

Not only was the contribution insufficiently recognized, but when the Chinese manufacturers excelled in their performance -- slashing costs and therefore prices, they often got a target on their back and were punished by foreign governments for alleged dumping.

The EU has taken a rational move on the solar panel issue, but anti-dumping is still an instrument rampantly exploited against Chinese products. While it abandons trade measures against solar panels, Brussels has imposed provisional anti-dumping duties on electric bikes imported from China.

Here again the Commission is taking the side of some less-efficient manufacturers over importers, retailers and users. The Collective of European Importers of Electric Bicycles has put up a good fight, arguing that tariffs would harm those dependent on imports of parts from China, as well as European consumers by reducing choice and driving prices up. Besides, it impedes the development of clean mobility and efforts to reduce carbon emissions in the EU.

But as of now, the Commission appears to be not listening. Perhaps it should learn from the lessons on solar panels.

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