Looking for new machines for photovoltaic products after entering Ornault

2017 07/04
After difficult negotiations,the EU's"double anti"investigation into China's photovoltaic industry ended with a"price commitment"plan.Although price commitments are relatively flexible trade measures compared to the imposition of anti-dumping duties,due to the setting of minimum prices for Chinese exports,mainland enterprises that are not competitive in the high-end market have lost significant market share.However,after experiencing the"double anti"storm in Europe and the United States,China's photovoltaic industry has increasingly attached importance to improving quality and technology.With the continuous innovation and improvement of technological level of enterprises,as well as the reasonable guidance of policies,the competitiveness of China's photovoltaic industry will be improved and new development opportunities will be ushered in.

Beginning and End of the EU Photovoltaic"Double Anti"Investigation into China:

China is the world's largest producer of solar panels,with nearly 65%of the world's solar panels produced in China.In 2011,the share of solar panels imported from China in the EU market reached 80%;China's export volume of photovoltaic products to Europe is as high as 20.4 billion US dollars,with a direct employment population of over 300000 people in related industries in China.

On July 25,2012,the industry association EUProSun,which represents the interests of solar energy manufacturers in the EU,submitted an application for filing an anti-dumping investigation against Chinese solar energy products to the European Commission(EC),claiming that Chinese solar energy products entered the EU at a lower cost price,causing substantial damage to the industry in the EU.

On September 6,2012,the European Commission announced that it would launch an anti-dumping investigation against solar panels,solar cells,and solar wafers imported from China.

On September 26,2012,the European Union Photovoltaic Manufacturers Alliance filed a complaint with the European Commission alleging that photovoltaic products imported from China benefited from unfair government subsidies.

On November 8,2012,the European Commission announced a countervailing investigation against Chinese photovoltaic products.So far,the EU's"double anti"investigation of photovoltaic industry in China has become the largest trade dispute involving the largest amount of money in the history of China and the EU.

After the launch of the EU's"double anti"investigation on China's photovoltaic industry,the Chinese government and industry associations have actively negotiated with the EU,but the European side has a strong attitude and the negotiation progress has been slow.As of July 29,2013,European Commission Trade Commissioner De Gucht announced that after negotiations,China and the EU had reached a friendly solution to the photovoltaic trade dispute.The EU accepted the"price commitment"scheme submitted by Chinese photovoltaic exporters,and exempted 121 Chinese enterprises participating in the scheme from temporary anti-dumping duties.The price commitment will be implemented from August 6,2013 and will be valid until the end of 2015.At this point,the EU's"double anti"investigation into China's photovoltaic industry has come to an end.The

price commitment implementation plan and

implementation of the basic obligations of Chinese enterprises in the price commitment.According to the documents released by the EU,the price commitment reached by both China and the EU in the photovoltaic dispute includes four elements:first,all products must comply with the"minimum import price".The EU's minimum import price is calculated in euros(CIF),and the specific price has not yet been disclosed(Article 3.4.);Second,annual export data should be updated,and export prices should still meet the requirements of"minimum import prices"(Article 3.2.);The third is to comply with the requirements specified in the export text.All solar energy products exported by Chinese enterprises to the EU must comply with the information in the text,such as commercial invoices and export commitment certificates.The original export price commitment certificate should be attached to the exported products and submitted to the EU.Chinese enterprises also need to submit commercial invoices to the customs,The invoice should contain a complete product description and a complete and concise PCN(Product Control Code)description(clauses 4.3.and 4.5.);Fourth,comply with other obligations so that the European Commission can effectively monitor the implementation of price commitments.

In addition,other obligations of Chinese exporters include:submitting detailed sales reports.Chinese enterprises must report the sales data of the imported EU products to the European Commission within 15 days after the end of each quarter,and must submit the export quantity of each solar energy product(different PCNs)to the EU every month.The reporting period must not exceed 7 days after the end of the reporting period(Clauses 5.5.and 5.7.);Accept the verification by the authority of the European Union or other member states(whether it meets the requirements of price commitments);In the process of implementing price commitments,the Chinese Chamber of Commerce for Import and Export of Mechanical and Electrical Products and export enterprises can seek consultation from the European Union when necessary(Article 6).

During the implementation of price commitments,the European Commission will evaluate the implementation.The fundamental purpose of the assessment is to test whether the"industrial damage"caused by Chinese products to the European photovoltaic industry has been suppressed under the control of minimum price exports and quota exports.The

implementation plan for price commitments is

in accordance with relevant EU laws and regulations.In order to prevent artificial manipulation of market prices,China and the EU have not released specific figures on minimum prices and export quotas.However,according to media reports,the minimum selling price of photovoltaic modules exported from China to Europe is 0.56 euros per watt,with an annual quota of 7 gigawatts(GW).Due to strong opposition from some photovoltaic enterprises,the original quota allocation scheme of"6:3:1"was adjusted to"6.5:2.5:1",and the 65%share of the annual export quantity specified in the commitment agreement was allocated based on the proportion of photovoltaic cell modules exported by enterprises to the EU to China's export to Europe.Among them,30%is calculated based on the export share during the EU anti-dumping investigation period(July 1,2011 to June 30,2012),and 30%is calculated based on the export share from July 1,2012 to March 31,2013;Allocate 25%of the annual export volume specified in the commitment agreement as an incentive and key support share to participating industry defense enterprises;Give priority to supporting enterprises with small export scales with a 10%share of the annual export quantity specified in the commitment agreement,and make up to 2MW for enterprises with an annual share of less than 2MW;The remaining part is used to support photovoltaic battery export enterprises with proprietary brands,high technology content,and good financial status.

Implementation of price commitment

According to relevant reports,photovoltaic products in Chinese Mainland are mainly middle and low grade.Before the implementation of the price commitment,China accounted for about 70%of the EU photovoltaic market share.After the implementation of the price commitment,the market share originally belonging to the mainland was mainly occupied by products from South Korea and Taiwan,China,China.In addition,the high-end products produced by the mainland are inferior to those from Japan and the European Union,resulting in the current market share of mainland enterprises in the European Union is less than 30%.

Due to the minimum price set,the actual export price of solar cells from China to the EU after August 2013 was higher than the promised price.Since mid October 2013,the price of photovoltaic modules in Europe has increased,while the average price of monocrystalline silicon modules in the German spot market has increased by 4%,from 0.75 euros per watt(approximately US$1.02)to 0.78 euros per watt(approximately US$1.06),while the average price of polycrystalline silicon modules has increased by 7.9%,from 0.63 euros per watt to 0.68 euros,while the price of components made in China has remained stable,rising by 5.4%to 0.59 euros per watt.In the past six months,component prices in all three categories have shown a long-term upward trend.

In terms of quantity,since the implementation of the price commitment,although China's Ministry of Commerce,industry associations,and the European Commission have repeatedly negotiated for a certain amount of export quotas,they have set a price floor,resulting in the loss of price advantages for enterprise products.In addition,their competitiveness in terms of quality has been insufficient,making the quotas not exhausted and wasted.According to a rough estimate by the China Photovoltaic Industry Alliance,after implementing the price commitment,China's photovoltaic product shipments to the EU have decreased by more than 70%year-on-year,which means that the utilization rate of export quotas is less than 30%.The

negative impact of price commitments on the EU

Before the price commitments were reached,the European Union for Affordable Solar Energy publicly wrote to the European Commission's Trade Commission stating that sanctions against Chinese photovoltaic companies would"destroy"the entire EU photovoltaic market.The open letter emphasizes that 70%of the value of the photovoltaic supply chain in the EU market is created in Europe,with upstream and downstream suppliers creating an output value of about 40 billion euros and contributing 265000 jobs.Enterprises that advocate sanctions against Chinese photovoltaic products have created no more than 8000 jobs at most.This open letter was signed by over 700 photovoltaic companies and 1024 senior executives from over 20 European countries.

The achievement of price commitments is the result of a game of interests between the photovoltaic module industry and solar energy users in Europe.Although price commitments are relatively flexible trade measures compared to the imposition of anti-dumping duties,the implementation of price commitments has prevented European users from continuing to enjoy the benefits of low-cost Chinese products due to the setting of minimum prices for Chinese exports.Currently,the market share of mainland products in the European Union has been less than 30%,resulting in a contraction in the European photovoltaic market and a reduction in employment opportunities.

Taking into account the negative impact that has occurred since the implementation of price commitments,the European Commission has made adjustments to the implementation plan of price commitments.Starting from April 1,2014,the minimum price limit for Chinese export products has been lowered from 0.56 euros per watt to 0.53 euros,in line with the overall trend of lower global production costs for photovoltaic modules.As China's top tier photovoltaic manufacturers still have a certain brand advantage in the European market,the lowering of the minimum price will have a positive impact on China's top tier photovoltaic manufacturers.After the price adjustment,the price of photovoltaic products exported from China to the EU is expected to approach that of other competitors,thereby enhancing the competitiveness of Chinese products in the European market.

Outlook for the follow-up implementation

of price commitments The price commitments reached between China and the EU will be implemented from August 6,2013 and will be valid until the end of 2015.After the deadline expires,the EU will review the price commitment.If the review finds that price commitments are insufficient to offset the damage caused to industries within the EU by so-called dumped and subsidized products,or if the cancellation of price commitments will again lead to industrial damage,the EU may continue to implement price commitments or adopt more stringent trade measures.It is expected that China and the EU will start negotiations again at that time to reach a solution.

In addition,according to Article 15 of the Protocol on China's Accession to the WTO,the non market economy treatment applicable to China in anti-dumping investigations will expire at the end of 2016.At that time,if the EU still takes anti-dumping measures against solar cells exported from China,it should recalculate the dumping margin for Chinese enterprises in accordance with the practice of market economy anti-dumping.At that time,the anti-dumping measures applicable to Chinese enterprises are expected to be well adjusted.The

photovoltaic industry has developed in a balanced manner.The export

market structure and marketing strategy have changed.After the launch of the"dual anti"investigation of the photovoltaic industry in Europe and the United States,the mainland photovoltaic industry has adjusted its market structure and marketing strategy.On the one hand,it has avoided the US dual anti measures by using solar cells produced in Taiwan,while reducing direct exports to the EU;On the other hand,actively explore the most important emerging markets in the future,such as South America,Southeast Asia,Africa,the Middle East,Japan,and Russia,and select appropriate regional agents to gradually establish and improve the marketing network.At the same time,pay attention to the development of domestic photovoltaic markets,so that domestic and foreign markets can achieve balanced development.

According to a report released by the research institute CCID Think Tank under the Ministry of Industry and Information Technology,China's export volume of photovoltaic modules in 2013 was about 16GW,with an export value of about US$10 billion,a year-on-year decrease of 27%.Among them,the share of exports to the United States accounted for about 10%,while the share of exports to Europe decreased from nearly 65%in 2012 to 30%in 2013.Japan has become the largest exporter of photovoltaic modules,with an export value of approximately 2.2 billion US dollars,accounting for 22%of the total export value of the global market,with exports to India and South Africa accounting for 5.2%and 4.5%respectively.

According to recent statistics released by the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products,in 2013,the Japanese market accounted for 24.63%of China's total photovoltaic product exports.In the first two months of 2014,the proportion reached 34.23%.The above data show that Japan has become the largest market for China's export of photovoltaic products.In 2013,the Asian market accounted for 44.78%of China's total export value of photovoltaic products.In the first two months of 2014,the proportion rose to 52.39%.In contrast,the proportion of the European market in the total import value of China's photovoltaic products decreased from 30.26%in 2013 to 22.56%in the first two months of 2014.

Trends of other countries'trade measures against China's photovoltaic products In 2012,after the United States imposed anti-dumping and countervailing duties on China's photovoltaic products,mainland enterprises began to use solar cells produced in Taiwan,China to circumvent the"double anti"measures of the United States.As the export volume rebounded,on December 31,2013,Solar World Industries America,Inc.of the United States formally filed a filing application with the United States Department of Commerce and the International Trade Commission on behalf of the domestic industry in the United States.Subsequently,on January 23,2014,the US government again launched a"double anti"investigation on photovoltaic products in Chinese Mainland and Taiwan,with the purpose of comprehensively and strictly restricting China's export of crystalline silicon photovoltaic products to the United States,and closing the loophole for mainland enterprises to circumvent the"double anti"sanctions through contract manufacturing in Taiwan.

According to the investigation procedure,the United States Department of Commerce will make a preliminary determination of the countervailing and anti-dumping investigation on Huajing silicon photovoltaic products in June 2014,and it is expected to make a final determination by the end of the year.Due to the fact that this investigation is aimed at photovoltaic products manufactured in Taiwan,the investigation authority must use a market economy method to calculate the normal value for Taiwan enterprises,and the dumping margin obtained on this basis is relatively limited.In addition,the United States needs to sprint installation in the short term,while the production of battery chips from American manufacturers is currently insufficient to meet domestic demand.Therefore,in order to reduce overall cost considerations,help American manufacturers maintain competitiveness in the domestic market,and ensure the smooth development of the construction of solar power generation systems in the United States,the final result of the investigation may be to adopt more moderate trade measures.

In early 2014,domestic enterprises in Australia submitted an application to their government to launch a"double anti"investigation against our photovoltaic enterprises.Compared to European and American countries,Australia has less tariff barriers on overseas photovoltaic products.Currently,there has been no formal announcement of filing.

Japan is currently the largest market for China's photovoltaic products exports.In 2013,China's exports to Japan accounted for 22%of total exports.If Japan launches a"double anti"investigation,it will bring a significant impact to China's photovoltaic enterprises.However,Japan rarely adopts trade measures on imported products.It is understood that apart from Kyocera,Sharp,Sanyo,and SolarFrontier,which produces CIGS,most Japanese solar manufacturers attach great importance to system development and investment,and rely heavily on component imports.In addition to stable domestic sales,it is unlikely that the Japanese government will initiate a"dual anti"investigation against China.A

new opportunity may be in sight

.Since the launch of the"double anti"investigation by Europe and the United States against China from 2012 to 2013,the number of Chinese photovoltaic enterprises has significantly decreased,and the number of Chinese photovoltaic enterprises suspended/bankrupt has exceeded 300.In 2013,the total liabilities of China's top 10 photovoltaic enterprises exceeded 100 billion yuan.In the first half of the year,only 8 polysilicon enterprises were still producing,and 80%of them were in a state of shutdown.Moreover,influenced by the supply and demand relationship and the overall industrial environment,Chinese photovoltaic enterprises,especially those lacking competitiveness,may face a wave of bankruptcy in 2014.At the same time,enterprises with good domestic development momentum and continued strong exports,such as Jingke Energy Co.,Ltd.,Jingao Solar Energy Technology Co.,Ltd.,Tianwei New Energy Co.,Ltd.,Hairun Photovoltaic Technology Co.,Ltd.,and 3M Material Technology(Hefei)Co.,Ltd.,have received many high-quality orders from both domestic and foreign companies after experiencing the"cold winter"of"double reverse"in Europe and the United States,with a construction rate of 100%,and are in a state of full production.

In the past,the blind promotion of local governments led to the rapid development of the scale of China's solar photovoltaic industry,but the development of the industrial chain was not coordinated,and the technology was relatively backward,resulting in serious overcapacity in photovoltaic production.After experiencing the"double anti"storm in Europe and the United States,China's photovoltaic industry has increasingly attached importance to improving quality and technology.At present,although some enterprises are still in the stage of relative overcapacity,with the continuous innovation and improvement of technological level of enterprises,it is expected to break through technical barriers.With the reasonable guidance of policies,the competitiveness of China's photovoltaic industry will be improved in domestic and foreign markets,and usher in new development opportunities.

In the past,the blind promotion of local governments led to the rapid development of the scale of China's solar photovoltaic industry,but the development of the industrial chain was not coordinated,and the technology was relatively backward,resulting in serious overcapacity in photovoltaic production.After experiencing the"double anti"storm in Europe and the United States,China's photovoltaic industry has increasingly attached importance to improving quality and technology.At present,although some enterprises are still in the stage of relative overcapacity,with the continuous innovation and improvement of technological level of enterprises,it is expected to break through technical barriers.With the reasonable guidance of policies,the competitiveness of China's photovoltaic industry will be improved in domestic and foreign markets,and usher in new development opportunities.

This article is translated by software translator for reference only.