The European Commission has decided to impose an 11.8 per cent tariff on Chinese solar power panels, a quarter of the expected rate, in a move that is being seen as a reprieve for Chinese manufacturers.
The US Commerce department has found that Chinese producers were selling below the cost of manufacture and benefiting from state subsidies, and set anti-dumping duties of up to 78.42 per cent on Chinese solar panels and of up to 27.55 per cent on solar cells from Taiwan.
China's anger at the US decision to impose tariffs on its solar industry has been further compounded this week by the American decision to impose duties as high as 26 per cent on Chinese wind tower manufacturers.
EU ProSun, a group of European solar equipment manufacturers are pressing the European Commission to extend the basis of investigation on China over concerns that they are unfairly subsidising their solar panel industry at the expense of European firms.
The Obama administration has imposed tariffs of up to 4.73 per cent on Chinese manufacturers of solar panel cells, judging that they benefited from unfair export subsidies after a review that has split the US solar industry.