The European Union has made good on its promise and warnings to Chinese solar panel makers. The EU has kicked off an investigation into Chinese solar panel companies on allegations of dumping made by a group of European solar firms.
The complaints of dumping have been led by Germany's SolarWorld, who have said that the Chinese companies have been selling below cost in Europe to grab market share and depressing prices. This practice is known as `dumping.'
Some of the companies who are under the EU scanner are Yingli Green Energy, Suntech Power Holdings Co Ltd, Trina Solar Ltd and Canadian Solar Inc.
Earlier in July, producers of the solar panels in China had warned that any investigations would trigger off a trade war. They had even called on their government to back them against any such probe.
However China's response to the news of the investigation was subdued.
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"China expresses deep regret," Ministry of Commerce spokesman Shen Danyang said in a statement.
"Restricting China's solar panel products will not only hurt the interests of both Chinese and European industry, it will also wreck the healthy development of the global solar and clean energy sector," said Shen
Shen urged the EU to, ""seriously consider China's position and proposals, and to resolve friction over solar panel trade through consultations and cooperation."
China exports more than $25 billion worth of solar panels to the European Union in 2011 and has grown rapidly over the years.
But recently it has been struggling with excess capacities and depressed demand.
JA Solar Holdings Co., Ltd. (ADR)(NASDAQ:JASO) plunged 0.032 (-3.67%) to $0.838, Suntech Power Holdings Co., Ltd. (ADR)(NYSE:STP) lost 0.040 (-4.87%) to $0.78, Trina Solar Limited (ADR)(NYSE:TSL) fell 3.34% to $4.05. LDK Solar Co., Ltd (ADR)(NYSE:LDK) slid 4.14%.
Among the gainers, Yingli Green Energy Hold. Co. Ltd. (ADR)(NYSE:YGE) soared 6.50%, SunPower Corporation(NASDAQ:SPWR) rose 5.20%.