I PV companies suffered another US-European pincer

The Welfare Warriors to double whammy. Has been the United States and Europe "double reverse" China PV enterprises, this sentence can be described as reflected most vividly. November 7 and November 8, Chinese enterprises by the series of "dual" attack: one is to make the final ruling of the U.S. International Trade Commission (USITC), finds that imports from China of crystalline silicon photovoltaic cells and groups from the United States and Europe pieces of material injury related industries in the United States, and will maintain the level of tax rates proposed by the U.S. Department of Commerce; another head initiating countervailing duty investigations, the EU announced the official PV modules in China and key parts, this means that the EU has had anti-dumping "SLR" officially upgraded to "double reverse".

The United States and Europe "attack"

Local time on November 7, USITC all 6 votes in favor by this decision. The U.S. Department of Commerce had been the final ruling recognized the existence of dumping and subsidies behavior of Chinese exports to the United States of crystalline silicon photovoltaic cells and modules, and to obtain the approval of the USITC, U.S. Department of Commerce will officially ask the Customs "dual" tariff levied on such products.

In October, the U.S. Department of Commerce to determine the existence of dumping and subsidization of Chinese exports to the United States, solar cells, and the United States will for the production and export impose anti-dumping tariffs ranging from 18.32 to 249.96 percent, and from 14.78 to 15.97% of the anti- subsidies to tariffs. After a comprehensive calculation of the two tax rates, China's photovoltaic enterprises "double reverse" the level of taxation in the range of 23.75% -254.66%.

Fortunately, the USITC announced at the same time, due to vote on the applicable conditions 4 votes against 2 votes in favor, "dual" tariffs will not contain terms retrospective forward, ie "dual" tariffs levied time to the U.S. Department of Commerce The preliminary results of the anti-dumping and countervailing duty investigations announcement subject to countervailing duties levied from March 20 this year, the anti-dumping duties levied since May 17 this year.

"Cancel retrospective effect" of the enterprises involved had to pay the security deposit will be returned in full to a certain extent, this can ease cash flow pressure. According to the newspaper was informed before they Yingli pay a "dual" margin of $ 13.7 million.

Misfortunes never come singly, November 8, the European Commission announced that with immediate effect to start the anti-subsidy investigation of solar panels imported from China and its major components. Previously, the anti-dumping investigation of Chinese PV products are already in progress.

The day of the press release of the European Commission, The European solar Enterprises Association (EUProSun), a complaint to the European Commission on September 26, alleging that the solar panels imported from China and its major components benefited from unfair government subsidies.

According to the EU's trade defense policy, the survey will need 13 months time. If there is sufficient evidence to prove the the above subsidies allegations are true, the EU can impose provisional countervailing duties within nine months.

From solar panel products involved imports of view, the European Commission has so far received the largest anti-subsidy complaint with. The data show that China's exports to the EU in 2011 worth about 21 billion euros of solar panels and the main components.

Enterprise is not satisfied, the government counterattack

The USITC's final ruling finds widespread dissatisfaction caused by domestic enterprises and industry associations, and even strong opposition.

China Machinery and Electronic Products Import and Export Chamber of Commerce said in a statement on the 8th, the ruling seriously distorted the status quo of China's PV industry and PV products exports to the U.S., and the "dual" the tariffs will seriously damage Sino-US and global green energy industry's sustainable development development and the interests of consumers.

The foregoing statement also sternly pointed out that the Chinese PV companies will be a careful analysis of the U.S. International Trade Commission ruling final ruling, and reserves the right to U.S. domestic litigation or multilateral trade mechanisms so as to safeguard their legitimate rights and interests.

Corporate aspects of this, although there are complaints, but the tone was more tactful. Trina is currently evaluating whether to appeal the proposed "will continue to expand its market in the United States, to provide our products to customers in the U.S., solutions and services.

Suntech announcement responded that "escalating trade barriers in the U.S. solar cell industry and employment caused severe challenges" Suntech "will continue to oppose not based solar tariff, everyone can afford to buy solar products to the world".

The newspaper agent case China PV industry joint defense lawyer was informed by the Chinese PV companies on the U.S. PV trade behavior is not in violation of U.S. law and WTO rules, the related companies are collecting favorable evidence, make full preparations for the joint protest .

Government, the first was initiated a counter-attack from the PV upstream raw material polysilicon. November 1, issued by the Chinese Ministry of Commerce announced that the "double reverse" investigation of polysilicon products from the EU. Previously, China also announced that the Ministry of Commerce of the polysilicon from South Korea and the United States "dual" investigation.

Secondly, China PV subsidy measures taken by some members of the EU objections. On November 5, the Ministry of Commerce announced photovoltaic subsidies EU member states have been proposed with the EU and its relevant Member State consultations under the WTO dispute settlement mechanism, officially launched the WTO dispute settlement procedures.

Should be self-help self-improvement

According to the the USITC final results, the use of batteries manufactured by a third country, the complete package components in China will not be levied countervailing duties and anti-dumping duties. This means that Chinese enterprises can be imported from a third-party areas battery, domestic assembled into PV modules to circumvent U.S. "double reverse". According to this understanding, the so-called third-party areas mainly China Taiwan region.

However, the person in charge of a domestic photovoltaic enterprises are not good. "This is not normal and sustainable business model. Moreover, imports of Taiwan's photovoltaic cells will also increase the cost of our component products." Frankly stated that the responsible person.

In addition, the industry is more worried about photovoltaic major markets EU also follow suit in the United States, to impose high tax rates "dual" against Chinese PV products, it will become China's photovoltaic industry disaster. Continuous current EU launched the "dual" situation in such a possibility is not a small probability.

The industry generally believe that the current crisis, the PV companies should not only counting on the domestic market to launch a large-scale self-help self-improvement, but also by means of promoting industry consolidation upgrade.

The industry news department of the National Energy Board, the State Grid Corporation of size up the situation, and promptly issued a "notice" about the reporting of large-scale applications of distributed photovoltaic power generation demonstration area, the "well distributed photovoltaic power inverter generation and network services." and a series of favorable policies to support the start of the domestic market, these policies will undoubtedly alleviate to some extent the domestic photovoltaic industry is facing a critical situation of life and death.

In the case of external policy support, the domestic photovoltaic industry should not blindly optimistic, but should be a rational understanding of the inherent overcapacity, the core technology innovation is not strong, so in order to resolve potential industrial crisis in the invisible.

The data show that in 2011, global PV installed capacity was added 27.4GW capacity year already up to 60GW, of which more than 70% in China. Researcher at the Energy Research Institute of National Development and Reform Commission, Wang Sicheng forecast, the world's new PV installed capacity growth in 2012 will be a significant reduction in the installed capacity will be 30-35GW. "If China's photovoltaic capacity remains the original high-speed growth, resulting in serious excess capacity situation would be disastrous" Wang Sicheng on the reporter said.

China Resources Comprehensive Utilization Association Renewable Energy special committee chairman Li Junfeng, China's photovoltaic industry in trouble, an important reason for the lack of standardized management industry itself, the blind expansion of enterprises, disorderly competition. "To be out of the woods, we must rely on industry consolidation and upgrading," said Li Junfeng.

GF Securities analyst Li Jing Hua, Chinese enterprises should strengthen the scientific and technological innovation to accelerate technology research and development, and other ways to master core technologies, with core competitiveness, to shift from the "dummies" to sell brainpower ".