China complains to WTO that EU subsidises to solar panel exports

CHINA is retaliating in the solar panel conflict, alleging to the World Trade Organisation (WTO) that EU member states subsidise solar panel manufacturing and exports.

This comes after the EU charged China with dumping their solar panels on the European market at below cost.

Chinese Commerce Ministry spokesman Shen Danyang said subsidies by EU states constituted a "violation of WTO prohibitions...seriously affecting Chinese exports and harming China's rightful interests as a WTO member," reports London's Containerisation International.

It said the EU is the biggest market for China's solar panel manufacturers with imports valued at US$21 billion in 2011.

In the event the EU wins the battle it would be in a position to decide on protective measures, which could include the imposition of tariffs similar to the 250 per cent duty hikes applied by US lawmakers earlier in the year.