Can China's PV hold the European market?

The Sino-European PV trade dispute, which has been going on for nearly two years, is finally dawning. In the direction of reassurance, EU Trade Commissioner De Gucht and the Chinese Minister of Commerce Gao Hucheng attended the annual China-EU The Economic and Trade Mixed Commission, Gao Hucheng said that both China and the EU have the will and sincerity to properly resolve the PV dispute through price commitment negotiations. European Commission Trade Commissioner De Gucht also affirmed that the European side hopes to seek a friendly solution. De Gucht told the media that China and the EU have reached an agreement on the photovoltaic framework, and the technical issues still need to be discussed for some time, and they are confident that they will be resolved in the next few weeks.

Does this dawn make the domestic PV industry, which has been in the “severe winter” for a long time, feel a little warm?


Can't save the European market?

Relevant information shows that the price commitment refers to the agreement on the WTO, after the importing authority makes a preliminary decision on the existence of dumping, industrial damage and its causal relationship, if the exporter actively promises to increase the export price of the relevant goods or stop exporting at the dumping price, And with the consent of the importing authority, the anti-dumping investigation procedure can be temporarily suspended or terminated without taking temporary measures or imposing anti-dumping duties. Since the 1990s, the European Union has allowed Chinese companies to adopt price commitments in two cases of color TV and magnesia bricks.

The specific content of the China-EU PV "Price Commitment Negotiation" is as follows: China promises that the PV products exported to Europe should not be lower than a certain minimum price and set a specific time limit; China promises to limit the components exported to Europe each year to a certain extent. Within the scope of the scale. In exchange, the EU will not take anti-dumping measures against Chinese PV products. This is the first time since the EU’s “double-reverse” on China’s photovoltaics on June 4th that “the anti-dumping tax rate for China’s PV products exported to Europe has been 11.8% in the past two months, and may be raised to 47%”. The major turnarounds that have emerged have received widespread attention from the domestic PV industry.

Xu Hui, general manager of Zhejiang Dazhan Photovoltaic, told this reporter: "We are not willing to give up the European market and hope that the China-Europe negotiations will finally reach an agreement!" Xu Hui revealed that Dazheng PV has sold PV modules to the European market. Market experience shows that The European market is very welcoming China's PV products. It is only because the EU adopts anti-dumping, countervailing and anti-monopoly measures that it has to give up its exports to the EU. If China and the EU reach a consensus on price commitments this time, it will have certain positive significance for restoring exports to Europe. But "the key depends on how much the price threshold is finally reached. If the threshold is too high, it is still unacceptable."

Another insider revealed that China had submitted a price commitment plan to the European Commission, but the negative attitude of the European side has shown that it cannot accept the conditions proposed by the Chinese side. "If the minimum price of EU PV companies is reported to the European Commission, the price of China's PV module exports to Europe may be no less than 1 Euro/W in the future, which is significantly higher than the average 0.4- of Chinese companies' exports to Europe. A level of 0.6 Euro/W. If the price commitment is limited to this, it means that China's PV products are not competitive in the European market."
"If this is the case, we would rather lose the European market." The person claimed

Keeping the market is to survive

"For Chinese PV companies, don't give up the European market!" Zhou Dewen, deputy director of the Central Committee of the Democratic Progressive Committee and chairman of the Wenzhou SME Development Promotion Association, said in an interview with this reporter that he has long been concerned about the survival of the photovoltaic industry. I am very aware of the current difficulties faced by PV companies. He stressed: "There is a market to have the opportunity to continue to survive and compete."

“Price commitments mean that China will make greater concessions and compromises on export prices, but in order for China's PV industry to survive, it is necessary to make concessions and compromises, because only in this way can EU orders be obtained. Let the company survive. This concession is very big, but the current domestic photovoltaic industry is in a difficult situation. By contrast, the primary problem is to ensure survival, and then to tap the potential for further development."

Zhou Dewen admits that the price commitment means that domestic PV companies will lose a lot of profits, roughly losing 30% of the profits on the original basis. But in order to keep the market and survive, this sacrifice is worthwhile. At present, we must strive to achieve no loss.

For China, the price commitment means that China will lose its original price advantage. However, for the current Chinese phobia in the hungry industry, in the fierce market competition, the most crucial thing is to keep the market and make a comeback. This is a realistic choice. Now is not a time to care.

Europe and the United States are the main export markets for Chinese PV products. Europeans are interested in PV products from China. They often hear Europeans jokingly say: "We need your PV products, but we don't have money, it is best that you donate. Give us some." China's photovoltaic products are of high quality and low price, so they will not give up on Chinese products. "This is our greatest confidence in the negotiations."

Zhou Dewen also stressed that to prevent another possible danger, that is, after the implementation of the price commitment, although the trade war can not be played, it also means that under the premise of friendly consultation, China must voluntarily give up the right to counter, if If you don't grasp it well, it may end up causing companies to lose their actual benefits and eat dumb losses. This possibility is there. However, no matter how negotiating should be based on reconciliation, the settlement of reconciliation between China and the EU is better than the trade war. Both sides must show sincerity and always come to the meeting. Trade negotiations for more than a month in the future are crucial. In order to deal well with the negotiations, a good tripartite mechanism (ie, the mechanism for the government, enterprises and business associations to work together) should be formed, and the best negotiators should be selected. Actively respond to trade negotiations with Europe.

"I believe that in the two-month trade negotiations with Europe, we will achieve the best results of negotiations! The Central Government has attached great importance to it, so Chinese companies should not succumb to failure in two months, and do not give up the European market. Prime Minister Li Keqiang During the inspection in Hebei Province, he said, "The current Sino-European negotiations have had some success, but the negotiations have not ended. We firmly oppose trade protectionism and hope that the company will survive for two months. "In fact, it is implied that the situation will change after two months." Zhou Dewen said with confidence.

There is still a way out in pain

For the enterprise, although confidence is there, every day must face the pressure and pain of survival. In an interview with this reporter, Xu Hui used the words "bad", "painful", "difficult" and so on to describe the current situation of the company. She revealed that the company's photovoltaic products have been discontinued.

Xu Hui said with a smile: "Responsible companies are very difficult!"

As for the cause of the current pain, Xu Hui said that it was mainly caused by excessive investment. When the market was optimistic in the past few years, the local government encouraged the development of the photovoltaic industry, so the company invested tens of millions of dollars, but then the domestic economy was sluggish, the government support was not strong, the capital chain was broken, and the banks became more and more demanding. The urge was very strong, and if it was not, the loan would be blacklisted. Last year, I managed to pay 60 million yuan to the bank, but after that, I couldn’t lend a penny.

In addition, the triangular debt owed a lot, and the lawsuit became a commonplace, so the skin was also learned to thicken, so that the lawyer came forward...

Xu Hui said frankly that the current needs of enterprises are the funds, business is not afraid of losses, they are afraid to stop! Government policy should be clear, bank reminders don't rush so urgently, let the company slow down! In this case, enterprises still have opportunities. For example, the company has recently raised 10 million yuan to invest in the development of LED energy-saving lamps for the purchase of equipment, components and R&D. It is hoped that the relevant departments will give the company a way to live, and perhaps it will be able to support 2015!

Zhou Dewen is very aware of the real pain of domestic PV companies. He said: "Photovoltaic, as a new energy industry that the state has strongly supported, can now be called "internal and diplomatic difficulties." In China, banks are squeezing and lending, which leads to difficulties in financing and excessive blood loss, and the capital chain is broken. The main export markets have adopted anti-dumping and countervailing measures against the Chinese PV industry, which has made China's PV industry suffer from the enemy. Under this circumstance, the government should implement a certain degree of subsidy and support for the PV industry, and do not let the PV industry be completely annihilated."

At the same time, we must actively explore other overseas markets, such as Australia, New Zealand, South America, etc., actively explore the domestic market and take measures to reduce costs. Zhou Dewen revealed that the official is formulating the “Renewable Energy Heating Implementation Plan”. The focus of the program is on heating applications based on solar, geothermal and biomass energy. According to this plan, China Solar will be 2015. The replacement of standard coal by renewable energy solar thermal power generation will reach 50 million tons, and by 2020 it will reach 100 million tons. This will be a good way for the photovoltaic industry in the midst of difficulties.

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