New PV stimulus package to offset EU barriers

On June 6, the EU imposed an interim anti-dumping duty of 11.8 percent on imports of all Chinese solar panel products, including panels, cells and wafers. The duties will be raised to an average of 47.6 percent two months after they were first imposed if both sides fail to negotiate a better deal.

"The negotiations are ongoing," said Zhou Dalin, deputy director-general of the bureau of fair trade for imports and exports under the Ministry of Commerce.

"We have the basis of reaching an agreement. A scheme that both sides can accept will be mutually beneficial," Zhou said.

"China needs the EU market and the EU needs cheap PV products from China," he said.

Emerging markets

Tapping emerging markets is being seen as an effective way to offset losses in the EU market, industry insiders said.

"There is huge demand for PV products around the world. We don't necessarily have to focus on the European and US markets," said Qian Xiping, director of the new energy department of the information and technology commission of the city of Xinyu in Jiangxi.

Overseas sales at Jiangxi Risun Solar have dropped to a third of the company's total production due to strategic restructuring, according to Zhang.

The company began shifting its business focus to Asia after the EU began its anti-dumping investigation against Chinese PV products last year. About 80 percent of the company's sales are in India.

Chinese PV companies are also building factories in emerging markets in order to facilitate market access.

China Sunergy Co Ltd, a specialized solar cell and module manufacturer in east China's Jiangsu province, has already started shipping solar modules from its plant in Istanbul to customers elsewhere. The Turkey plant is the company's second-largest plant.

Jiangxi Risun Solar is building a factory in Latin America and is considering building one in Algeria.

Financing needed

The government said Monday that it will subsidize on-grid solar electricity for 20 years, as well as provide tax breaks to PV companies that are participating in mergers, acquisitions or reorganization.

Banks will be encouraged to finance PV companies with independent intellectual property rights, advanced technology and high potential, according to the statement.

Industry insiders have expressed hope that supportive taxation, subsidy and financing measures will be implemented as soon as possible.

"A lack of subsidies, as well as poor financing and sales for on-grid solar electricity, are restricting the development of the domestic PV market," said Tong Xingxue, president and chief executive officer of LDK Solar, a leading Chinese PV company.