Price Wars Seen Hurting Solar Sector in China

The following is an excerpt from an article in 

The New York Times
Wednesday, August 22, 2012

Price Wars Seen Hurting Solar Sector in China

By KEITH BRADSHER

GUANGZHOU, China — China’s solar panel manufacturers, who dominate global sales with a two-thirds market share, are confronting growing trade and financial problems, a Chinese industry official acknowledged Tuesday, shortly before one of the industry’s largest companies, Trina Solar, announced weak results for the second quarter.

The Chinese manufacturers “face challenges of decreasing margins, decreasing exports, lack of capital, protectionism and an external environment that continues to deteriorate,” said the official, Chen Huiqing, the deputy director for solar products at the China Chamber of Commerce for Import and Export of Machinery and Electronic Products.

The United States Commerce Department has already imposed preliminary antidumping and antisubsidy tariffs on Chinese solar panels totaling more than 33 percent, although the tariffs are subject to a review by the department this fall that could raise, lower or even repeal them. A coalition of solar manufacturers in Europe has asked the European Union to impose antidumping tariffs.

Ms. Chen, who was the lead speaker Tuesday morning at the Guangzhou International Solar Photovoltaic Exhibition here in southeastern China, said that a team of representatives from the Chinese industry is in Brussels to try to persuade European officials not to start a trade investigation into Chinese solar panels in the coming weeks.

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