On December 5, the European Commission extended existing EU trade defense measures against Chinese solar imports, which were due to expire this month.

Currently imports of Chinese solar products into the EU are subject to price and quota restrictions, based on a framework put in place in July 2013. This involves both a minimum price undertaking and a cap on Chinese supplies.

Chinese exporters agreeing to the minimum import price in 2013 have avoided EU anti-dumping duties (ADs) and countervailing duties (CVDs) of up to 47.6 percent. The agreement was intended to resolve dumping – where products were being sold in the EU at below Chinese market prices – while ensuring a stable supply of solar panels to the EU market.

At the request of EU ProSun, an association of European producers, the Commission has opened expiry reviews covering the ADs and CVDs and the minimum import prices on Chinese solar products. The existing measures will remain in force during these investigations, which can take up to 15 months.

In a December 5 statement, China's Ministry of Commerce highlighted the importance of solar products in combatting climate change and addressing emission targets. It said the EC's decision to extend the existing minimum price framework will reduce growth in the European solar market and cause harm to the Chinese solar industry.