L R AS Published on Saturday 7 October 2023 - n° 460 - Categories:Germany, trade war
Germany is ready to fight to preserve its photovoltaic industry
Faced most immediately with competition from China, which is flooding the European market with low-cost solar panels, the German government is considering the possibility of imposing trade barriers on solar panels and components imported into Europe from China. This stance comes on the heels of a call from the
European Solar Manufacturing Council (ESMC) calling on the EU to protect European manufacturers from "intentional and deliberate attacksattacks by Chinese photovoltaic companies", in the form of an influx of cheap products that undercut and depress European prices. The ESMC explicitly stated that Chinese manufacturers had adopted a "dumping position" on Europe, but did not call for trade barriers or tariffs like the US.
The SolarPower Europe trade union reacted: "Trade barriers are not the solution. Trade barriers on solar energy are the ultimate lose-lose strategy for Europe".
The union advocates:
- EU state aid to allow Member States to cover the running costs of plants - i.e. operating expenses.
- Authorising specific auctions for resilience within Member States
- Set up a financing instrument at EU level dedicated to photovoltaic solar energy produced in Europe, such as a solar manufacturing bank".
PV Tech of 2 October 2023
Editor's note There are two conflicting interests: that of the German industry, which does not want to be sacrificed, and that of installers, who want to obtain panels at the lowest price. Unless Chinese interests have infiltrated the SolarPower Europe union and are influencing its position.
This is the second time (along with the automotive sector) in the space of a few months that the German government has voiced its opposition to the European Commission. It has been waiting for a European plan to counterbalance the effect of the American IRA and nothing has come of it. It sees that its large companies are far more attracted to setting up in the US than to staying in Europe. For him, this is enough: if the Commission does not take protective measures, he will have to adopt them himself.
This is all the more true given the recent examples of India, where a promising photovoltaic industry is being created within the country's borders. He has the example of the United States with its IRA law. It understands that this is the only way to protect its industries, which are particularly under attack from the Chinese. Proposing an investigation into aid and other subsidies to the Chinese electric car industry is not equal to the danger. But that is what the Commission is proposing. It wants immediate action. At the same time, it highlights the inadequacy of the Commission's decisions.
Faced with legitimate interests that do not appear to be defended by the Brussels authorities, the SolarPower Europe trade union asserts without proof that "customs duties are not a good solution."Providing aid to the European industry means giving the Chinese the opportunity to increase their aid and subsidies in the name of reciprocity. As for inviting tenders with a right of priority, we have never seen a buyer give preference to a much more expensive bid just to favour a European candidate. It is in the payer's interest to buy the cheapest. This applies not only to calls for tender, but also to power purchase agreements, which will allow much cheaper Chinese panels to be installed without anyone checking to see which panels are being installed!
In the past, SolarPower Europe's attitude towards SolarWorld helped sink the company. Germany still remembers this event. The German government's announcement of customs duties is a wake-up call to the Brussels authorities: either you do something to defend German and European interests, or we will take action. It puts pressure on European decision-makers, who are being urged to act to defend European interests.
At last!
