Wen Hao: China and Germany agree to negotiate to solve the photovoltaic industry problem

Premier Wen Jiabao of the State Council said on the 30th that China and Germany agreed to resolve relevant issues in the photovoltaic industry through consultations, avoid anti-dumping, and further strengthen cooperation. This is an important way to resolve trade disputes and is an important achievement of the second round of Sino-German government negotiations. It will also play an exemplary role in the world.

After the second round of negotiations between China and Germany, Wen Jiabao and the German Chancellor Angela Merkel jointly met with reporters. In the field of trade, China and Germany must take concrete actions against protectionism, negotiate and resolve major concerns, and work on product development, Cooperation in production and sales.

In July this year, a number of EU companies, including German companies, formally submitted to the European Commission an application for an anti-dumping investigation against Chinese PV products. According to regulations, the EU must decide whether to file a case before September 6. It is understood that the total amount of China's PV products exported to the EU in 2011 was approximately US$20.4 billion. If the anti-dumping case is filed, it will become the largest trade dispute in China’s history.

In fact, the photovoltaic industry in China and Germany has formed complementary and interdependent relationships. In 2011, China imported 764 million U.S. dollars of polysilicon materials and 360 million U.S. dollars of silver paste raw materials from Germany, and purchased about 40 billion yuan of photovoltaic cell production equipment from overseas. Germany and Switzerland and other European countries accounted for nearly 50 percent. "If the EU imposes restrictions on China's photovoltaic products, it is feared that it will raise its own feet." Shen Danyang, spokesman for the Ministry of Commerce, said.

When meeting with reporters, Merkel also expressed the hope that the European Commission and relevant companies will try to eliminate and solve problems through communication and communication, and not start anti-dumping procedures. "There is still time, so it is best to negotiate and resolve it."

Experts here believe that in the current global economic development there are still unstable, uncertain factors, and the long-term trend of economic downturn, a stable free trade environment is the guarantee for the Chinese and European companies to tide over difficulties. Resolving trade disputes through dialogue and negotiation instead of resorting to anti-dumping measures at all times is also a practical reflection of opposing protectionism and coping with the crisis.

"We also talked about protectionism in small-scale talks. It is impossible to solve the current problems through protectionism. It is best to solve them through communication and negotiation. We all need free trade and we need to find conditions for fair competition in the other country." Kerr said.

"Current cooperation between China and Germany and China and the EU must focus on boosting confidence, letting the people see hope and not engage in protectionism, but must deepen cooperation and jointly develop the market," Wen Jiabao said.

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