The European Commission confirmed this week that it would be attempting to tackle “circumvention” by some Chinese solar producers of existing anti-dumping and countervailing duties, specifically by imposing duties on solar modules and cells being imported into the 28-nation bloc from Taiwan and Malaysia. According to the EU executive, the measures were necessary to address so-called transhipment of Chinese-made solar modules and cells via Taiwan and Malaysia, which Brussels claims was an attempt to evade anti-dumping and countervailing duties. Those Taiwanese and Malaysian companies that are indeed “genuine” producers will not, however, face these fees. Anti-dumping duties aim to tackle instances where products are sold abroad at prices below their normal value – a practice known in trade jargon as “dumping.” Countervailing duties serve a different purpose, namely to address instances where an exporting producer is receiving unfair state aid. Reviewing 2013 deal The duties at issue were imposed in 2013, following a heated row between Brussels and Beijing on solar energy trade that escalated sharply upon the news that the Commission had found evidence of Chinese solar panels and their components being “dumped” on the European market. (See Bridges Weekly, 6 June 2013 ) At the time, the EU...
