The most popular EU tax on photovoltaic products i

2022-07-24
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I have been reluctant to talk about the EU's plan to impose punitive tariffs on China's photovoltaic products this week. The matter has been pending for more than a year, and such a result is almost inevitable. However, the latest progress shows that kareldegucht, EU trade commissioner, is expected to formally propose to impose anti-dumping duties on China's photovoltaic products. Therefore, if I continue to turn a blind eye to this, I will be somewhat negligent

according to the latest report, the carbon dioxide emissions proposed by kareldegucht can be reduced by 17% and the tax rate may be 40% or higher. According to insiders, if the tax rate exceeds 30%, China's photovoltaic industry, which is already struggling, will be seriously damaged. However, the focus of my talk today is not this old topic, but the predictable response of China. China will attack this and warn the EU that it may retaliate by imposing such tariffs

personally, I believe that the Chinese government often gives unfair support to its photovoltaic industry, which has prompted Europe and the United States to investigate. China's drive system: the government, including electromechanical drive, usually gives various preferences to the industries it hopes to promote, especially the emerging high-tech fields, such as tax reduction, providing free or low-cost land and other forms of policy support

this practice gives Chinese enterprises an unfair advantage over enterprises in other markets. However, China has not tried to solve the source of the dispute, but has waited for the situation to become serious and reacted angrily

the trade friction between China and Europe and the United States on photovoltaic products has lasted for nearly two years. In 2011, a photovoltaic product company in the United States went bankrupt, which became the fuse of this friction. As this enterprise has obtained the government's increasing support loan at a rate of more than 12% each year, the US Congress held a hearing on its bankruptcy. The result of the hearing was a formal investigation, which finally led the us to decide to impose punitive tariffs on Chinese photovoltaic products last summer and officially issued them in November of the same year

at the same time, many European photovoltaic enterprises are in trouble for similar reasons, leading to the EU's investigation. As in the case of the United States, this process is very long and involves many landmark developments, including the latest tariff increase proposal. After the proposal for tariff increase is put forward, the EU also needs several administrative steps to accurately determine the physical performance data of various materials, and is likely to formally introduce punitive tariffs later this year

in the face of this annoying and destructive cycle, Chinese government leaders should seriously reconsider their strategies and take more constructive and preemptive measures

the Chinese government abhors such "interference" and usually lets the problem go by itself without taking any action before it turns into a crisis. But by the time the crisis occurs, the problem may be too serious to be solved. In addition, all parties involved are very frustrated and angry. It is very difficult or even impossible to have a constructive dialogue, which will eventually lead to a destructive stalemate

for the current PV trade disputes, it may be too late for the Chinese government to take constructive measures to ease the concerns of Europe and the United States, but this does not mean that it should not try to reconcile. If the Chinese government makes such an attempt, it may help resolve the dispute as soon as possible. Another important point is that rescuing the photovoltaic industry conforms to the interests of all parties and is crucial to creating a sustainable energy environment in the future

in a word: the Chinese government needs to adjust its strategy to resolve the photovoltaic product trade disputes with Europe and the United States through constructive dialogue rather than angry warnings. Zhonghua glass () Department

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