China opened a second front in a solar power war with Europe on Monday, lodging a complaint with the World Trade Organisation to challenge policies that Beijing argues favour firms in Italy and Greece. Days after warning that it could put punitive tariffs on European Union exports of solar-grade polysilicon, a key raw material for solar power, China said Italy and Greece broke WTO rules.
The two EU states offered a higher electricity price to solar power producers that used mainly locally sourced components, it said. While details of China's suit have yet to emerge, it appears to be the same complaint that the EU and Japan have brought against Canada - with the WTO expected to rule against Canada.
"The Chinese government has the right and the responsibility to fight for a fair international trade environment for China's solar industry," Chinese Ministry of Commerce spokesman Shen Danyang said in a statement. Shen said all countries should strengthen industry co-operation and eschew short-term "protectionist" measures. By lodging its complaint, China triggers the formal process for a WTO dispute and, if talks with the EU fail to resolve the issue, after 60 days it could ask the global trade body to adjudicate. Solar power has struggled to compete with other fuels without government support, a fact that drove oversupply in the industry, a collapse in profitability and accusations of governments cheating on trade rules to protect their own manufacturers.