Less than a week before China’s premier visits Germany, tensions are rising between the European Commission, about to slap anti-dumping duties on Chinese solar panel producers, and Berlin, which prefers the path of negotiations lest Beijing retaliates against German exporters.
Berlin’s criticism of Karel De Gucht, trade commissioner, may seem paradoxical: German solar- panel producers are big losers from the steep price cuts caused by China’s promotion of renewable power equipment. A German company, SolarWorld, spearheaded the original complaints against alleged dumping and illegal subsidies.
But the dispute is a case study in the complexity of global manufacturing and the futility of protectionism. Anti-dumping duties will hurt not only their intended victims, Chinese solar-panel makers. Europeans too will suffer from the higher prices that will result. Mr De Gucht should listen to Berlin.