**Abstract:**
At the regular press conference of the Ministry of Commerce held on June 18, Shen Danyang, a spokesperson for the Ministry, announced that China and the EU had initially agreed to hold the 27th China-EU Economic and Trade Mixed Commission in Beijing on June 21. During the meeting, both sides will discuss and address bilateral trade issues, including the ongoing dispute over photovoltaic products.
The high-level meeting, co-chaired by Minister of Commerce Gao Hucheng and European Commission’s Trade Commissioner De Gucht, is expected to resolve the $20.4 billion "PV dispute" as soon as possible. Since June 4, the EU has imposed an 11.8% temporary anti-dumping duty on Chinese photovoltaic products, with the deadline for a potential settlement set for August 6 — just two months away.
Despite the urgency, it's crucial to recognize that the final outcome of these negotiations depends largely on the strength of each side’s leverage. The EU’s decision to impose anti-dumping duties on Chinese solar panels was not a random move but a strategic one aimed at protecting its own industry. This step has hit a sensitive nerve in China’s photovoltaic sector, which relies heavily on crystalline silicon technology.
Interestingly, the EU has been pushing for the development of thin-film photovoltaics, a shift that could reshape the global solar energy landscape. A recent article titled “European ‘Double-Reverse’ Conspiracy: The Struggle of Thin Film vs. Crystalline Silicon Solar Cell Technology Routes†sparked widespread debate in the industry. It revealed how the EU’s policy may be designed to favor thin-film technology, which aligns with its long-term energy strategy.
Currently, China’s photovoltaic industry is dominated by crystalline silicon, while Europe is investing heavily in thin-film technologies. According to Dr. Chen Wei, a leading expert in renewable energy, over 60% of German government funding for solar research has gone to thin-film projects in the past five years. Additionally, thin-film companies in Germany receive electricity subsidies, unlike their crystalline silicon counterparts.
This shift suggests that the EU’s “double anti-dumping†measures are not just about protecting its market but also about promoting its preferred technology. As a result, thin-film photovoltaics are likely to gain more traction, potentially reshaping the global solar industry.
Even in the crystalline silicon sector, where China holds a strong position, the EU still maintains a technological edge. According to Chen Yu, core technologies such as high-purity silicon refining and ultra-thin wafer slicing remain under European control. This gives the EU significant influence over the industry, even if it doesn’t directly target Chinese companies in this round of tariffs.
In addition, key components like silver paste used in crystalline silicon cells are still dominated by European firms like Heraeus. No domestic company in China can currently produce the front-side paste, further highlighting the technological gap.
On the other hand, the EU’s “double anti-dumping†measures have also caught the attention of France. Despite the relatively small volume of wine trade between China and the EU, the French government has shown strong support for the EU’s stance on Chinese PV products. This is partly due to pressure from domestic interests, especially among Portuguese farmers who export low-end wines to China.
A French journalist noted that nearly 20% of Portuguese farmers' annual output goes to China, and the “double anti-dumping†measures could severely impact their livelihoods. This has led to growing public sympathy in France and increased pressure on the government to reconsider its position.
As the situation unfolds, it’s clear that the PV dispute is more than just a trade issue — it’s a complex interplay of technology, politics, and economic interests. With both sides holding strong cards, the coming weeks will be critical in determining the future of the global photovoltaic industry.
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