Large PV companies will consolidate European market share

Abstract "China and the EU have reached a price commitment on photovoltaic products, which is a good news for the domestic PV industry and can release part of the surplus capacity of the photovoltaic industry. However, in the long run, PV companies will seize the overseas market and rely on the technological advantages and service levels of the products. ....
"China and the EU have reached a price commitment on photovoltaic products. It is a good news for the domestic PV industry and can release a part of the surplus capacity of the photovoltaic industry. However, in the long run, PV companies will seize the overseas market and rely on the technological advantages and service levels of their products. Zhu Junsheng, director of the Renewable Energy Professional Committee of China Resources Comprehensive Utilization Association, showed cautious optimism yesterday on the issue of price commitments for China's trade disputes over PV products.

On July 27th, the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products issued the "Joint Statement on the Price Commitment of China's Export of PV Products to Europe". The joint statement showed that China's export of PV products to Europe has reached a price commitment. The joint statement believes that the development of China's photovoltaic industry needs to pay more attention to industry development planning, international market diversification, international and domestic market balance, and more attention to the coordinated development of new technology research and development, raw materials and equipment manufacturing.

“The China-European PV dispute has reached a price commitment, which will help boost the confidence of China's PV industry and overall favor the PV industry, especially for the battery and component manufacturers downstream of the PV manufacturing industry.” International Trade and Economic Cooperation Research Institute of the Ministry of Commerce Dr. Liu Jianying said that for large-scale PV companies with brand, technology, scale and sales channel advantages, once the quota system is implemented, the quota will be tilted toward it, and the European export market share will accelerate its concentration, and the price increase will benefit. The improvement of the profit of the photovoltaic industry.

It is reported that in the final price commitment signed by 95 Chinese PV companies and the European Commission, the set price bottom line is 0.56 euros per watt, and the total annual output of China's PV products to Europe should not exceed 7GW (7 million kilowatts). A portion exceeding the above quantity limit or below the price bottom line will be subject to a 47.6% anti-dumping duty rate.

At present, the price of Chinese PV products exported to the EU is between 0.5 Euro and 0.52 Euro per watt. “After the implementation of the price commitment, the price of China's PV products will increase by about 10%. Compared with the anti-dumping duty of 47.6%, the impact on exports will be reduced a lot, but the competitiveness will be weakened.” China Renewable Zhao Yuwen, director of the Photovoltaic Committee of the Energy Society, said.

"The realization of this price commitment may still be unacceptable for some PV companies. The domestic PV industry will accelerate integration, leading enterprises will have greater capacity, and will be further supported according to the national incentive policy, while other companies in the industry are facing Being integrated or eliminated." Liu Jianying stressed.

According to Liu Jianying, in the text of the price commitment agreement, the EU may take such investment transfer as Chinese companies (establishing overseas companies and re-exporting to Europe), reporting the actual power of photovoltaic products, buying one get one free (disguised price reduction) ) The "curve to save the country" method has set strict control measures and punishment methods, and imposes an anti-dumping tariff penalty of 47.6% on enterprises that violate the policy.

"Domestic PV enterprises should make full use of this opportunity to accelerate the industrial restructuring and transformation and upgrading, accelerate technological progress, and strive to improve the quality and efficiency of the development of the photovoltaic industry. It is necessary to cultivate a group of leading enterprises with strong technical research and development capabilities and market competitiveness. Accelerate technological innovation and industrial upgrading, improve the self-sufficiency of raw materials such as polysilicon and the level of photovoltaic cell manufacturing technology, significantly reduce the cost of photovoltaic power generation, and improve the competitiveness of the photovoltaic industry.” Liu Jianying finally put forward the above suggestions.

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