EC hits China for “massive illegal” subsidies to Chinese PV makers

But will not impose punitive duties.

The European Commission yesterday concluded an anti-subsidy probe into imports of Chinese solar panels, saying Beijing made "massive illegal" payments to its companies.

EU ProSun, the main EU solar panel manufacturers' lobby group, said the EC’s anti-subsidy report showed that Chinese producers got government subsidies of up to 11.5% of their sales.

It claims Chinese subsidies have led to a Chinese takeover of the European solar market, resulting in numerous closures of European companies and factories, as thousands of job losses.

Failing Chinese action, EU ProSun called on the EU to impose countervailing duties to counter the effect of these illegal subsidies and motivate China to stop these trade distorting practices.

The Commission declined to confirm the details of the probe, however. It only said that it had informed interested parties (including China) of its findings and they could now comment on them.

The Commission said it will consider these comments and determine what definitive action should be taken in the investigations. Final remedies will have to be approved by EU leaders by the end of this year.

The European Union said the anti-subsidy probe was entirely separate from an anti-dumping investigation that led to punitive levies on imports of Chinese solar panels in June and which was settled in late July.

The EC previously said that in light of the anti-dumping accord, it would not impose punitive duties in the anti-subsidy case but that it would continue the probe through to a solution.