China will suspend the checks on wine and polysilicon from Europe, The Financial Times reports citing the anonymous sources. That was one of the terms of the informal agreement on settling the trade dispute between China and the EU. The conflict provoked by the Chinese solar panels imports to Europe that occupied about 80% of the corresponding market. According to the agreement, which is supposed to be concluded until August 6, the Chinese companies will not sell their products at the price less than 56 cents per watt.
The European manufacturers expected that the minimum price will be set at the level of 80 cents per watt. However, being apprehensive of breaking out the large-scale trade war with Beijing, Brussels did not make up its mind to establish such value.
Last month EU Trade Commissioner Karel De Gucht found the Chinese solar panels producers responsible for dumping and introduced the temporal tariffs that increased the export value by 47%. These tariffs will come into effect in case the agreement is not approved.
In response to that, China imposed sanctions against the European wine by carrying out a series of inspections. That caused a serious damage to the European producers, who had already suffered from the crisis. The People’s Republic of China is one of the major consumers of this product that buys 8.6% of the entire wine exports from the continent.
The investigation of the China’s dumping has become the most extensive one in the history of the external EU trade. China, which in 2011 supplied Europe with the solar panels totaling $21 billion, dominates on the European market due to the low prices in comparison with the ones of the local manufacturers.
