Solar panel makers in Europe have filed a second round of complaints with the European Commission saying that Chinese firms were getting subsidies that were unfairly benefiting them.
A complaint had been filed earlier this year claiming that Chinese solar panel makers were dumping their products and driving down prices in Europe.
The current group of 25 solar panel manufacturers are led by SolarWorld from Germany, which was also the company which had spearheaded the earlier accusations.
Chinese solar panel companies have more than 80 percent of the market share in China and this has irked local manufacturers in Europe, who find themselves edged out of the market.
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The EU has launched an investigation into the activities of the Chinese companies after complaints of dumping surfaced earlier last month.
This time the complaint is that the Chinese government was allowing subsidies to local firms so that they were able to produce more than what the local demand was and double the global demand.
This subsidy support by the government ensured that the companies had access to funds at low rates of interest while they also got the benefit of having their debt being written of if they were unable to repay their loans, or even extended indefinitely.
Some of the Chinese companies with whom the European companies have a problem are Yingli Green Energy Hold. Co. Ltd. (ADR)(NYSE:YGE), Suntech Power Holdings Co., Ltd. (ADR)(NYSE:STP) and Trina Solar Limited (ADR)(NYSE:TSL).
The complaint said that while the Chinese companies have been thriving with the support of their government several European companies had gone broke and had to close down their activities.