On March 25, Chong Quan, Deputy China International Trade Representative and Vice Minister of Commerce, answered reporters’ questions about China-EU trade disputes. The details are as follows:

Q: The EU has filed the case of anti-dumping (AD) and countervailing duty (CVD) investigations against imports of Chinese PV products for a while, and can you brief the communication between the two sides after the case was filed? There were similar cases between China and the EU, and what are the differences of this case from those of the past? At the beginning of June, the EU will make the preliminary ruling, and what does China consider doing to solve this problem in the remaining two months?

A: The Chinese government attaches great importance to China-EU PV trade friction case, and sticks to the stance to solve the dispute through dialogue and is paying efforts to it. Since last year, we have made communication and consultation with the EU from political and technical levels for many times. Last year, then Premier Wen Jiabao personally exchanged views with leaders of European Commission and EU member countries, and the Chinese Ministry of Commerce also sent for several times delegations and working groups at different levels to Europe for consultation. Communication between China and the EU of different levels has been smooth, and China has never suspended or postponed consultation with the EU for any reason. Currently, the case is under investigation procedure, and China’s responding work is orderly. China will never give up efforts to solve the disputes through consultation with the EU.

China and the EU did have a lot of trade disputes in the past. However, this AD/CVD combined investigation against PV products is unprecedented in terms of trade volume involved, the industrial type and the impact. First of all, the amount of money involved is huge. According to preliminary estimates, export of PV cell products involve US$ 20 billion for Chinese enterprises, accounting for over 70% of that of total EU’s trade remedy cases against China in 2012. Secondly, the case is about clean energy, the strategic emerging industry in the current globe. Since 2012, influenced by international financial crisis, price drop of international PV products and the trade remedy measures adopted by the US and EU against China’s PV products, China’s PV industry has been sluggish and run at a loss, encountering unprecedented development difficulties, which gravely impacted the development of our energy industry. According to statistics, export of China’s PV products in 2012 decreased by 35%, of which export of solar cells and the subassemblies decreased by over 40%. Just a few days ago, Suntech Power Holdings Co., Ltd., China’s largest PV enterprise, has declared bankruptcy reorganization. Last, the most important, the case relates to lots of jobs in China’s PV industry, with over 400 thousand people’s jobs will be influenced according to preliminary estimates. Based on these reasons, the Chinese government has paid high attention to the case. Doubtlessly, improper treatment of the case will bring severe negative impact on China-EU trade and economic relations.

China and EU are important trade partners to each other, with a large amount of trade volume. The two sides are highly complementary, and have extensive cooperation and common interests in many fields such as PV products, automobiles, airplanes and agro-products. The proper handling of trade frictions relates to the whole situation of the healthy and stable development of China-EU trade and economic relations. Here, I want to reiterate that the Chinese government has always been advocating solving problems arising from development and competition through industrial dialogue and cooperation. We want to appeal again that the EU should consider in earnest China’s stance and suggestions and the cry of the upstream and downstream PV industries of the EU, and use trade remedy measures with circumspection and solve trade frictions over PV products through consultation and cooperation. Both as WTO member state, China and the EU should together make contribution to maintaining international trade order.

(to be continued)