As I've said before, this was a repeat of the Chinese tactics in the rare earth business, underprice the competition by so much that they go bankrupt e.g. Germany's Q-Cells, formerly the world's largest, even at the risk of bankrupting some of your own players (Suntech, also once the world's largest) while subsidizing the chosen ones (see Trina).
From Der Spiegel:
Solar Strife: EU Fires First Shot in Trade War with China
REUTERS
In Chinese industry, the officials of the European Commission have a reputation similar to that enjoyed by tax investigators among affluent tax evaders. They are hated, but at the same time they are received with the greatest of civility.The duties will start June 6 at 11%.
Which is why more than 100 Chinese exporters of solar panels in recent months have dutifully filled out pages of forms from the European Commission, which accuses them of trying to drive the competition into bankruptcy by undercutting their prices. When the European inspectors arrived, Chinese companies even gave them access to their confidential price calculations for the domestic and international market.
The Chinese are being so accommodating because they have plenty of experience with such procedures. The European Commission has thus far imposed punitive tariffs against the country for so-called dumping offenses in 48 different sectors. Chinese companies know that the size of the tariffs depends in part on the extent to which they cooperate in the investigations.
European Trade Commissioner Karel De Gucht is convinced that China systematically manipulates its prices to drive European manufacturers of solar cells and panels out of business. Those Chinese companies that have proven to be cooperative are expected to pay a 37 percent punitive tariff, while others will pay tariffs of up to 69 percent if they wish to continue selling their products in Europe, their primary market....MUCH, MUCH MORE
