Reacting strongly towards the European Commission’s (EU) impending anti-dumping probe into Chinese solar panel imports, China has called the decision ‘regrettable’ and said that it will have negative effects on the trade relations between the two regions.

The EU had officially confirmed the investigation through a statement on Thursday. The anti-dumping investigation is seen as the biggest ever probe in terms of trade value involved. The EU is by far the largest importer of Chinese made solar panels, and accounts for almost 60% of China’s solar panel exports. EU alone imported solar panels worth USD 20.4 billion during the last financial year, when the total exports of solar products by China stood at USD 35.8 billion.

Considering the impact it may have on the profitability of a large number of Chinese photovoltaic companies, which may even face bankruptcy, PV companies have called on the EU to end the protectionism towards other economies and companies. The decision to launch a probe against Chinese solar products imports came after a group of European solar companies approached the European Commission with anti-dumping complaints against the Chinese solar products. The group included enterprises from EU member nations such as Germany and Italy. 

The group of representatives who filed a complaint at the European Commission was headed by Solar World, a German company. The company is facing huge losses and had earlier headed a similar complaint against Chinese solar products in the U.S. also. The company has alleged that Chinese solar products manufacturers are selling products at a price less than the production cost incurred.

China on the contrary has alleged EU of protectionism claiming that the charges are groundless and that it would have adverse effects on trade ties between the two nations. Though Chinese officials have said that the probe is regrettable, they have assured full cooperation. However, similar trade impositions have already started and Chinese manufacturers of polysilicon have filed dumping claims with the China authorities against European manufacturers. A similar suit was followed by Chinese wine makers too, who too have filed dumping complaints with the Beijing office in August.

The probe and subsequent outcomes are seen as a threat to the global solar industry, which may have long term effects on trade.