**Abstract**
At a regular press conference held by the Ministry of Commerce on June 18, spokesperson Shen Danyang announced that China and the European Union had initially agreed to hold the 27th China-EU Economic and Trade Mixed Commission in Beijing on June 21. The meeting will address key issues in bilateral trade, including ongoing disputes over photovoltaic products.
The high-level meeting, co-chaired by Chinese Minister of Commerce Gao Hucheng and EU Trade Commissioner De Gucht, is expected to resolve the $20.4 billion "PV dispute" as soon as possible. The EU imposed a temporary anti-dumping duty of 11.8% on Chinese photovoltaic products starting June 4, with a potential settlement deadline set for August 6. This gives both sides only about two months to reach an agreement.
Despite this tight timeline, it's important to recognize that the outcome of these negotiations ultimately depends on the leverage each side holds. The EU’s decision to impose anti-dumping duties on Chinese PV products is not just a routine move—it reflects deeper strategic concerns.
In fact, the EU’s preliminary anti-dumping ruling has struck a sensitive nerve in China’s photovoltaic industry, marking the first step in a broader strategy. Meanwhile, China’s reasonable and legal "double anti" investigation has caused strong reactions, especially from France. This suggests that even small trade volumes can have significant political implications.
**Europe’s Push for Thin-Film Photovoltaics**
On May 27, an article titled “European ‘Double Anti’ Conspiracy: The Struggle Between Thin Film and Crystalline Silicon Solar Cell Technologies†sparked intense debate in the industry. It revealed the hidden motives behind the EU’s “double anti†measures.
Currently, global photovoltaic technology is dominated by two main routes: crystalline silicon (monocrystalline and polycrystalline) and thin-film (amorphous silicon, cadmium telluride, copper indium gallium selenide). China’s photovoltaic industry is largely concentrated in crystalline silicon, with few companies focusing on thin-film.
Dr. Chen Wei, director of the Beijing Low Carbon Clean Energy Research Institute, pointed out that Germany, a major player in the EU, has been heavily investing in thin-film solar technology. According to the German Industrial Yearbook, over the past five years, more than 60% of government financial support went to thin-film batteries, and over 70% of research funding focused on thin-film photovoltaics.
Moreover, all thin-film photovoltaic companies in Germany receive electricity subsidies, while crystalline silicon firms do not. This has created a clear policy bias toward thin-film technologies. As a result, the EU’s “double anti†restrictions on crystalline silicon could shift market dynamics in favor of thin-film, promoting its development and reinforcing Europe’s leadership in next-generation photovoltaic technologies.
**China’s Crystalline Silicon Technology Still Lags Behind Europe**
Even in the field of crystalline silicon, where China’s PV industry is heavily concentrated, the EU does not seem to be reacting with leniency. The recent temporary tariff on Chinese PV products shows no sign of softening.
According to Chen Yu, there are two main reasons for this. First, the crystalline silicon supply chain does not meet European environmental standards. Second, core technologies remain under European control. For example, high-purity monocrystalline silicon refining and ultra-thin wafer slicing are still beyond China’s capabilities. Even if China reduces material usage, it cannot yet produce wafers thinner than 100 microns.
Additionally, in the production of silver paste used in crystalline silicon cells, German company Heraeus International maintains a technological monopoly. No domestic company in China can currently produce the front-side paste, which is critical for cell performance.
A 2010 report by the German Solar Energy Industry Association (BSW) showed that although most of Europe’s solar cells are imported, 80% of the added value remains in Europe. This highlights that the EU’s “double anti†measures may not significantly impact its core crystalline silicon industry.
**“Double Anti†Measures Touch France**
A notable detail is that on the same day the Chinese Ministry of Commerce announced its “double anti†investigation into EU wines, French President Hollande urged the EU to adopt a unified trade policy toward China. This was seen as a sign of growing concern.
Though the annual trade volume between China and France in wine is less than $1 billion, it has managed to provoke strong reactions, especially from French farmers. Portuguese farmers, who export a large portion of their low-end wine to China, are particularly affected. A French wine journalist noted that many Portuguese farmers rely heavily on exports to China, and the “double anti†measures could worsen their economic situation.
This has led to increased pressure on the French government, with some traders already looking to Hong Kong as a way to bypass the restrictions. They are also urging the EU to make concessions in the photovoltaic dispute to protect the interests of vulnerable farmers.
With tensions rising on multiple fronts, the coming weeks will be crucial in determining the future of Sino-EU trade relations.
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