The European Commission is imposing anti-dumping tariffs on Chinese solar panels in a move that could spark tit-for-tat retaliation from the world's second largest economy.
The commission, the European Union's executive arm, accused China of undercutting European rivals by selling panels below cost and threatening 25 000 jobs in the European solar industry.
"Our action today is an emergency measure to give life-saving oxygen to a business sector in Europe that is suffering badly from this dumping," said Karel De Gucht, European commissioner for trade.
"This is not protectionism. It is about ensuring international trade rules also apply to Chinese companies."
But Germany, by far China's biggest trading partner in the EU, is fiercely opposed to the imposition of tariffs.
A majority of EU member states are also against the measures, but EU law empowers the commission to impose duties if it believes producers are being harmed.
On Monday, Chinese Premier Li Keqiang warned European Commission president José Manuel Barroso that the case would hurt Chinese and EU interests "if not properly handled", according to the Xinhua state news agency.
Levies of 11.8% will come into force on Thursday for two months. Without a deal, the tariffs will go up to an average of 47.6% in August.
"There is a bit of brinkmanship. Everyone is waiting to see who is going to blink first," said Andre Sapir, a senior fellow at Bruegel, a Brussels-based thinktank.
Chinese solar-panel imports were worth €21-billion, making this the largest anti-dumping case undertaken by the European Commission. — © Guardian News & Media 2013