Where is the PV price promised to go to China-Europe trade?

According to the agreement, the China-Europe PV minimum price commitment agreement will expire by the end of this year. According to the decision of the European Commission on the termination of the China-EU PV case, China's PV products exported to Europe will continue the price reached two years ago. According to the evaluation of the Ministry of Commerce, "the result so far is still good."
At this point, another trade protection action declared "abortion." But can the Sino-European PV trade, which has been undercurrent, calm down?

The European Commission is stunned
According to the Ministry of Commerce, the European Commission recently disclosed that the current (China-Europe agreement) benchmark price, including China's price, can reflect the overall global PV product prices and does not need to be changed. In view of this, the European Commission intends to terminate the mid-term review investigation of the minimum price adjustment mechanism for the China-EU PV case.
Borrowing Liu Danyang, deputy director of the Trade Relief Bureau of the Ministry of Commerce, "China's photovoltaic industry is coming along, the road is hard, the road is hard, and it faces a very severe, complicated and multilateral international trade environment."
China's export products frequently encounter trade frictions, and the photovoltaic industry, which is a high-tech emerging industry, has not been spared. Since 2011, the United States, the European Union, India, Australia, Canada and other countries have successively pursued the Chinese PV industry. The United States has launched two rounds of "double-reverse" investigations.
The Sino-European PV dispute began in September and November 2012. At that time, the EU successively conducted anti-dumping investigations and countervailing investigations on solar modules, batteries and silicon wafers exported from China. On June 4, 2013, the European Commission announced that the EU imposed temporary anti-dumping on photovoltaic products produced in China in two steps. Tax – The temporary tax rate of 11.8% will be implemented from June 6th, and the tax rate will rise to 47.6% after August 6th. The average tax rate is 37.2%~67.9%.
The trade dispute, which claims to be the largest amount involved in the history, is fatal to China's PV industry. The largest export market for PV products in China will be blocked.
In the end, under the efforts of many parties, the Ministry of Commerce announced on July 27 that it had reached a price limit agreement with the European Commission for the “limit price limit”: the price of PV products exported from China to the EU should not be less than 0.56 Euro/W, which is exported annually. The amount does not exceed 7 GW, and the EU does not impose anti-dumping duties on Chinese PV companies participating in the price agreement. The agreement was implemented for two years.
With the two-year limit of the price agreement, the European Commission will start the mid-term review of the price agreement for the China-EU PV case on May 5.
Shen Danyang, a spokesperson for the Ministry of Commerce, said that the applicants "intended to raise the minimum price through review and raise the price threshold for Chinese products to enter the EU." The Ministry of Commerce actively defended this. In view of the fact that China's PV price decline is not greater than the international market price, the European Commission said it will terminate the investigation.
However, even during the implementation of the China-EU PV Minimum Price Commitment Agreement, the European Commission is still unwilling to do so.
In June and November of this year, the European Commission announced the cancellation of the price agreement of Artes Solar, Zhongsheng Optoelectronics, Qihui Sunshine and Zhejiang Zhengtai Company, Hangzhou Sunny Energy Co., Ltd. and its affiliated Zhejiang Jinbei Energy Technology Co., Ltd. "Qualification, and impose a high "double-reverse" tariff on it.
In the eyes of the industry, the European Commission has repeatedly severely sanctioned companies that violated the price commitment agreement, indicating that the price commitment agreement between China and Europe has not been relaxed, and it is likely to continue after the expiration of this year, which will further reduce small and medium-sized photovoltaics. The survival space of enterprises accelerates the consolidation of manufacturing.

Diversification needs to be diversified
"The impact of China-Europe price commitment on China's PV companies in the early stage is still quite obvious. On the one hand, a considerable proportion of the total sales volume was exported to Europe. Emerging markets and China's domestic market are not enough to digest production. On the other hand, a small number of enterprises Has already begun to lay out overseas production bases, but it is not yet in scale.” Yang Liyou, general manager of Jinneng Clean Energy Technology Co., Ltd. told China Industry News, “However, with the extensive development of the global PV market, the European market has accounted for nearly two years. Significantly, Chinese companies have focused their sales on China's domestic market and the Asia-Pacific market. At the same time, as some companies have continued to invest and build factories overseas, the impact of China-EU price commitments has been limited."
Since the trough in 2012 and 2013, China's PV industry has entered a stage of restorative growth and has continued to pick up this year. From January to September, China's polysilicon production reached 107,000 tons, up 9.1% year-on-year; battery module production reached 31 GW, up 32% year-on-year; new grid-connected PV installed capacity was about 10.5 GW, with cumulative installed capacity exceeding 38 GW. In the production of 18 polysilicon enterprises in China, 10 of them have achieved full production. The average gross profit margin of the top 10 component companies exceeds 15%, and the overall production and operation of the industry tends to be good.
According to Gao Jifan, chairman of the China Photovoltaic Association, in terms of exports, although it faces some trade frictions including Europe and the United States, exports continue to improve through the efforts of Chinese PV companies and government support.
The reporter noted that the EU was the largest export market for PV products in China. In 2011 and 2012, the total amount of China's PV products exported to the EU was about 20.4 billion US dollars and more than 10 billion US dollars. After a few frictions, the EU no longer occupies nearly half of China's PV export market. In 2014, Japan jumped into the largest export market for photovoltaic products in China.
In the first half of this year, China exported 6.1 billion US dollars of photovoltaic modules. Japan and the United States are the main export markets, of which exports to Japan accounted for 31.28%, while exports to Europe accounted for only 19.47%, and Asian markets accounted for 56.64 of China's PV module exports. %.
Therefore, Liu Danyang has repeatedly reminded that in the face of trade frictions, in addition to always staying awake, we must face up to our own shortcomings and face the problems of low-price marketing and disorderly export, and we should also recognize that we will participate in international participation in the future. Competition, enterprises will also face higher standards such as technical barriers, intellectual property rights, environmental standards, labor standards, corporate social responsibility, etc., and may also trigger a wider and more diverse trade friction.
In this regard, in addition to properly solving trade frictions through consultations and dialogues, the Ministry of Commerce also hopes that enterprises should focus on the long-term, pay attention to trade frictions, standardize operations and export order, adopt market diversification strategies, implement the strategy of going global, and actively develop international scope. Industrial cooperation.
In fact, China's PV industry already has the world's leading advantages including scale, technology, management and talent. At present, many countries along the world, especially the “Belt and Road”, are developing solar energy. This has provided many opportunities for Chinese companies to go global, and companies including Trina, Jingao, Jingke, Zhongli Tenghui, BYD, etc. all have new capacity in the world. "In addition to preventing the occurrence of trade frictions, it also allows Chinese companies to have greater influence globally." Gao Jifan said.
Jinko Energy, which just released its third quarterly report, also said that its global distribution has become more uniform. The United States, emerging markets (including South America, Chile, Mexico) and the Asia-Pacific market have been strong, and the capacity of Malaysian factories has begun to be released.
In this regard, Jinneng Technology also said that with the pace of market development, gradually expand production capacity and go to the world. The company has obtained a number of domestic and foreign product certifications including CB certification, Japan JET certification, UK MCS certification, China CQC front runner certification, TüVNORD salt spray tolerance certification and ammonia tolerance certification. In September this year, it completed the supply of 50 MW for the first phase of the 900MW photovoltaic power plant in ZTE Energy Pakistan.
"In the future, we will further deepen the cooperation with the photovoltaic projects along the 'Belt and Road' countries, and penetrate the clean energy markets of various countries to bring more high-quality products out of the country." Yang Liyou said.

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