Penal tariffs on Chinese solar products could risk 242,000 European jobs: report

If the European Union (EU) goes ahead with its intent to impose punitive anti-dumping tariffs on Chinese solar products, it could result in job losses of up to 242,000 over three years in the EU, a German study revealed yesterday.

The EU, which is struggling with an unemployment level of around 11 per cent, may suffer further as many downstream operations using solar panels may come to a standstill.

The study was presented by independent economic research agency Prognos at a hearing with the European Commission (EC) arranged by Germany's Alliance for Affordable Solar Energy (AFASE), which represents over 160 companies in the European photovoltaic (PV) installation and servicing industry.

Last September the EC started anti-dumping proceedings against China in order to investigate if the prices of Chinese manufactured PV wafers, cells and modules are being dumped. Later in November, the commission also commenced another proceeding against alleged illegal Chinese subsidies to solar panel makers.

The study revealed that if anti-dumping duties were imposed, these would increase the prices for Chinese PV products and result in increased cost of solar installations. That would adversely affect the viability of these installations and shrink their demand in the European PV market.

This would translate into large job losses in the EU, the extent of which would depend on the amount of duties levied.