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      Steep tariffs cannot save European manufacturers(2)

      2013-05-09 14:40 Xinhua     Web Editor: Gu Liping comment

      But even European companies have admitted that China's price advantage is largely a result of economies of scale, fueled in part by the exponential increase in the global demand for solar energy in recent years.

      Blaming the lack of competitiveness of European products on China is misguided. Instead of trying to win more breathing room through unfair protectionist measures, European solar panel makers need to find ways on their own to revive their businesses and compete with their rivals in the global market.

      In an interconnected world economy, trade protectionism can lead to a no-win situation. A malicious beggar-thy-neighbor approach can lead to a trade war that neither side can afford, and strain the valuable trade ties that have benefited billions of people from both sides.

      The protective measure involves about 21 billion euros (27.6 billion U.S. dollars) of Chinese solar panels, the EU's largest anti-dumping case to date. The European Union has every reason to handle the case carefully and work out solutions through dialogue and consultation with its Chinese partners.

      China deeply cherishes its ties with the European Union, its largest trading partner. As the EU's No. 2 trading partner, China is also rapidly expanding its consumer market, which can be a boost for Europe's economy still recovering from years of financial crisis.

      A cooperative, not an aggressive, strategy in managing ties between China and the European Union, two giant economies in the world, will reap economic rewards for both sides and build up global efforts at developing clean energy.

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