Four Major Chinese Solar Companies Issue Joint Statement to Call on the European Union to Exercise Caution in Initiating Antidumping Investigation on Solar Products from China and to Call on the Chinese Government to Protect Legitimate Interests of the Chinese Companies

07.30.2012

Recently, numerous media agencies reported that SolarWorld AG, a German company, has filed a petition with the European Commission (EC) to request initiation of an anti-dumping investigation on solar products imported from China. The EC may make its decision in the near future on whether to initiate the investigation. Faced with an escalated global trade war on solar products, four largest Chinese solar companies, Yingli, Suntech, Trina and Canadian Solar, hereby issue this formal joint statement on behalf of the Solar Energy Promotion Alliance and the entire Chinese solar industry. The four Chinese solar companies call on the European Union (EU) to take into account the Sino-EU trade cooperation and the common interests of the human race in fighting climate change and energy crisis and maintaining sustainable development and exercise caution in determining the initiation of the anti-dumping investigation on Chinese solar products. The four Chinese solar companies also call on the Chinese Government to take pro-active and resolute efforts to protect the legitimate interests of all relevant Chinese companies. The statement sets forth the following four key points.

I. The global solar industry is at a critical point of transformation and upgrading, and any market restrictive measures will put te enhtire industry at danger
Since the inception of the 21st century, it has been a shared dream, as well as an urgent need, of the human race to reform the energy consumption structure, reduce warm house gas emission, and achieve low-carbon and environmentally friendly growth. Solar energy has embodied the key advantages of the new energies, realized the dream of the human race, and transformed the human life through transforming the energy utilization model.

Currently, the global solar market is undergoing a large-scaled self-adjustment. A more scientific, more reasonable market model is coming into being in the near future through rational free competition. The EU is the first political and economic body that promotes the development of new energy industries, and its own solar industry has benefited from the enormous support of the EU's renewable energy growth policies. At the current stage, the EU should know it very well that any trade protectionist efforts attempting to restrict market access will undermine the balanced development of the global solar industry, hinder the energy structural reform, and impede the realization of the global strategic objective of long-term energy saving and emission reduction.

II. Solar industry is a globalized industry, and all nations have common interests in the development of the solar industry
In the past eight years, the price of solar products has significantly dropped because of solar products' technological development. The cost of solar modules has been lowered to 1 USD/watt. Solar cell's conversion rate has continued to increase, rising from 14% to over 19%. Solar energy has made its way into ordinary households, which could not have been possible without the highly efficient collaboration of the global solar industry on the basis of division of labor.

The solar industry of China and the solar industries of all other countries have formed a common interest community with mutually complementary advantages. The Chinese solar industry, while achieving self-development, has created more opportunities and vitality to the global solar industry, and EU may serve as a perfect example in this regard. EU has a competitive advantage in technology R&D, raw material supply and machinery manufacturing, and solar machineries and raw materials that EU exported to China totaled 7.5 billion USD in 2011. In recent years, EU has enjoyed surplus in its solar product trade. If a holistic view is taken of the global solar industry value chain, it can be seen that China's production activities focus on solar modules, because of its advantage of production scale. Production added value of the Chinese companies approximates 0.2-0.3 USD/watt, which accounts for about 8% to 10% of the global solar product value chain, considering that the international average installation cost of solar power facilities stands at about 2.5-3.0 USD/watt.

In addition, because of the solar industry's feature of “global localization”, Chinese solar companies have made significant contribution to the creation of employment positions in the EU nations. Incomplete statistics show that the EU has about 280,000 to 300,000 employment positions relating to the solar industry, the majority of which are attributed to Chinese companies, either directly or indirectly.

Therefore, only through the continuous enhancement of international cooperation and avoidance of trade barriers, may the global solar industry achieve better development and enter upon a pattern featured by cooperation, harmony, mutual benefits and win-win.

III. We re-emphasize that the Chinese solar industry does not receive alleged illegal subsidies or engage in dumping
Chinese solar products have been welcomed by global

Back