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Analysis on China's photovoltaic industry trade friction


By Sun Fei, General Office (Personnel Bureau), Development Research Center of the State Council (DRC)

Report No 125, 4624


China's photovoltaic industry has gone through many anti-dumping and anti-subsidy investigations from Europe and the US, resulting in substantial fluctuations throughout the industry. Trade friction is now a big problem that affects the industry's sustainable development. Although China and Europe have reached an agreement on anti-dumping range in 2013 with government mediation, general trade friction hasn't seen relief since 2014, with many more countries taking anti-dumping and anti-subsidy measures to China. At the same time, the industry's trade friction is spreading to larger areas, in addition to increased risks in emerging markets and enhanced demonstration effects.

China's concerned departments and enterprises should abide by the open-oriented economic strategy, improve institutional arrangement, and consider trade friction when carrying out industrial support policies. The industry also needs thorough surveys and integration to help enterprises prevent risks in domestic and international markets.