The US EU has no winners against China

The final investigation of the US solar subsidy trade investigation with China was finalized. On November 7, local time, the US International Trade Commission determined that crystalline silicon photovoltaic cells and components imported from China have substantially damaged the relevant industries in the United States. The United States will impose anti-dumping and countervailing ("double-reverse") tariffs on such products. The United States stated that the EU is not idle. On November 8, the European Commission officially announced that it had initiated a countervailing investigation on silicon wafers, batteries and components imported from Chinese PV companies. So far, the EU has followed the footsteps of the United States and began a "double-reverse" investigation of Chinese PV products. At this point, China's PV industry has suffered a more severe blow because the European market accounts for 70% of China's PV companies' exports. This "double-reverse" game was initially destined to be in a dilemma for Chinese PV companies. In the development of the photovoltaic industry, the EU has given a large amount of subsidies to enterprises in the region. The support of the Chinese government started late and the intensity is much smaller than that of the EU. But how can we not bow down under the roof? Protecting the country's photovoltaic industry is not a fundamental purpose. If the economy is in a recession, it will have to export contradictions. Implementing trade protectionism is the best way to create contradictions. Under the "double-reverse" investigation, China's photovoltaic companies have been paralyzed. The average profit margin of China's PV industry is already very low, and punitive tariffs will greatly increase the cost of PV product exports. Under the current situation, China's PV companies can only target domestic demand, and the government has begun to implement a series of rescue plans for the PV industry. Domestic enterprises represented by the State Grid began to increase their support for PV companies. On October 26th, State Grid held the “Service Distributed Photovoltaic Power Generation Grid-connected TV Conference and Press Conference” in Beijing to release the “Opinions on Working Together for Distributed PV Power Generation Grid Services”. From November 1st, 6 MW and below capacity photovoltaic power generation projects can be directly applied to the local grid company for grid connection, and can fully acquire surplus photovoltaic power generation projects. Relevant domestic departments and enterprises are looking for ways, and PV companies are also showing their brilliance to the Eight Immortals. Some have taken countermeasures, such as using similar OEM methods to export technology and photovoltaics with third world countries such as India. The company will cooperate in production and the two parties will be divided into sales. Although this strategy only circumvents the EU restrictions, it does not cure the problem, but at least guarantees the export of Chinese PV companies to the EU. Long-term companies can see clearly that the European market must not give up, because Europe is the largest stock market, providing the most stable cash flow. Some companies are ready to try to set up component factories in low-cost regions in Europe, such as Poland, Ukraine, Romania and other countries, to ensure the existence of sales channels and brands in the European market. After the Chinese company encountered a "double-reverse" investigation, on November 1, the Chinese Ministry of Commerce announced a "double-reverse" investigation of the EU solar-grade polysilicon material. On November 5th, China proposed to negotiate with the EU and its member states under the WTO dispute settlement mechanism on the PV subsidy measures of some EU member states, and officially launched the WTO dispute settlement procedure. Regardless of the United States or the European Union, the PV "double-reverse" survey launched has no winners, because this is a complete destruction of an industry's survival chain. For example, there are relatively few manufacturers engaged in the production of photovoltaic modules in the United States, which cannot meet the demand for photovoltaic products in the United States. After the "double-reverse" investigation of Chinese enterprises, the development of photovoltaics in the United States will be greatly affected. In the EU, China's photovoltaic products are produced in Europe, and the implementation of "double reverse", the output of European accessories is blocked, China's photovoltaic products can not be input, the industrial chain will be broken. The photovoltaic dispute under trade protectionism also objectively made the storm come earlier. The subsidy of the relevant government departments will be completed sooner or later. After the survival of the fittest, which enterprise will be supported by the “weaning period” will inevitably win the final victory.

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