China-EU negotiations are pushing the gap between the psychological prices of the two sides

Abstract In the past month, the two sides have been negotiating and negotiating on PV price commitments. At present, the negotiations are in the process of being promoted intensively. The situation of the negotiations is inconvenient to disclose, but it is clear that China hopes that the attitude of China-EU PV trade frictions will be properly resolved through consultations...
In the past month, the two sides have been negotiating and negotiating on PV price commitments. At present, the negotiations are in the process of being promoted intensively. The situation of the negotiations is inconvenient to disclose, but it is clear that China’s attitude of properly addressing the Sino-European PV trade friction through consultations has not changed.

Shen Danyang, a spokesperson for the Ministry of Commerce, said yesterday that at present, China-EU PV negotiations are in full swing. The EU delegation that had attended the talks in Beijing earlier has returned to Brussels, and the Chinese delegation will travel to Brussels to continue talks with the EU.

Shen Danyang made the above statement at the regular press conference of the Ministry of Commerce yesterday.

The psychological price gap between the two sides still has a gap

According to news from the European side, the deadline for consultations on August 6 is getting closer and closer. At present, the negotiations have reached the most intense state. There is still a certain gap between the psychological prices of the two parties.

Because there is still a gap in the price of the heart and the two sides do not make concessions, the recent negotiations are somewhat deadlocked. However, the negotiations are still going on.

The insider of the negotiations said that EU Trade Commissioner De Gucht, the former official who has been urging sanctions against Chinese PV products, has recently eased his attitude and is trying to accept the lowest price of €0.58/W. According to previous investigations by the European Commission, the relatively fair price should be above 0.8 Euro/W, and the price of 0.58 Euro/W is relatively close to the price proposed by China.

Recently, China has also changed its position of resolutely disagreeing with more than 0.5 Euro/W, but still requires a lower price of 0.05 Euro for the EU. Although it doesn't sound much different, the difference is enough for many PV manufacturers to lose money.

Negotiations are in full swing

Shen Danyang said yesterday that the two sides have been negotiating and negotiating on PV price commitments for nearly a month. At present, the negotiations are in the midst of intensive negotiations. The situation of the negotiations is inconvenient to disclose, but it is clear that China's attitude to properly resolve the Sino-European PV trade friction through consultations has not changed.

On July 16, a network of business work series on the theme of “actively responding to international trade frictions”, Zhou Dalin, deputy director of the Fair Trade Bureau of the Ministry of Commerce, stated that China is not afraid of trade wars.

Analysts believe that the recent strong statement from the Ministry of Commerce indicates that China will not make concessions in the Sino-European PV trade dispute.

On July 9, German media reported that China would not impose punitive tariffs on EU polysilicon products. Then, Ministry of Commerce spokesman Yao Jian responded that the EU polysilicon double-counter case is still under investigation.
At this moment, the EU is equally anxious about the outcome of this huge trade dispute.

If the Chinese delegation's negotiations in Brussels are still unable to reach an agreement, then after August 6, the tax rate of China's exports to the EU will rise sharply from 11.8% to 47.6%.

However, there are also views that in the "voting" of the European Commission's anti-dumping preliminary proposal for solar energy products in China in May this year, most EU member states voted against it, and Germany and other member states are likely to end later this year. Voted against the vote.

China's PV exporters have promised the lowest price in the EU market instead of paying an average of 47.6% of the high punitive tariffs, which is the basis for this negotiation. On the issue of determining the minimum commitment price, the two sides launched a few weeks of tug-of-war, and there was a big gap in psychological prices.