Research On EU-China Photovoltaic Products Trade Friction

As people pay more and more attention on energy problem, renewable energy began developing. PV industry also developed. Europe takes renewable energy seriously, puts the continuous subsidies of PV products, so the European consumer market is very large. The output of PV products has been soaring in China since2005, but China’s domestic consumer market developed slowly, so the products exported to Europe was huge. Because of European debt crisis, the economic developed slowly, the government can’t keep high subsidies. In order to revive the European industry, improve the employment rate, EU investigated the Chinese PV products for anti-dumping and anti-subsidy, at last the two sides agree made a price commitment to solve the question. EU market share is crucial for China PV enterprises, so the study of the reason of PV trade friction and PV products price changes affect the export of Chinese PV products has practical significance, it helps us to solve the EU-China PV trade friction and avoid a trade war.At first,this paper adopts literature research.The research is based on the international trade friction theory, game theory and literature of demand price elasticity theory.By reading a large number of the literature of international trade friction,I master the international trade friction research methods, research process and the research conclusion, and the latest research results of EU-China PV products trade friction.It laid a profound theoretical basis and the latest real-time dynamic.Secondly,the paper also uses the qualitative analysis.It adopts the method of qualitative analysis to research EU-China PV products trade status and the reasons of photovoltaic products trade friction.Analysis this conclusion is mainly based on the theory and combined the actual state of EU-China. At last,the prisoner’s dilemma by game theory in this paper concluded that the trade friction is harmful to all parties, proved that under the global economic integration, only cooperation can complete the benefit maximization.And this paper also through the demand price elasticity calculated that the PV products is full of price elasticity, it meant when prices rise, it will make the production decline rate is more than the price rises and make product revenue decline greatly. We can see the price changes have a huge impact on PV products which exports to China.This paper first makes a summary about the present situation of PV products market in China and EU.PV industry develops fast in China, the number of enterprises increase. But the capacity surplus, profits falls seriously, technical force is weak. EU has a huge consumer market. From2008,EU new installed capacity will account for more than half of the world every year. Major EU countries, Germany and Italy’s incentives and subsidies policy is proper, so EU has big import demand for PV products. Then it analyzes the export status of Chinese PV products. Chinese PV products is export-oriented. Export volume is huge, but the export products are mainly concentrated in the low-end of value chain, products export maret mainly concentrated in Europe. At the same time, China exported solar cells with low technology, and mainly in the form of processing trade.EU-China PV products trade friction began with SolarWorld led25EU PV enterprises to apply to the European commission, which demanded EU to investigate the import of Chinese PV products anti-dumping and anti-subsidy. The EU has finally carried on the investigation and punished Chinese PV enterprises. Trade friction is not only the influence of European debt crisis but also European political environment, the influence of the cost of production and technical reasons.EU and China PV products trade friction eventually ended in the two sides reached a price commitment.So in this paper, it gives solutions to EU-China PV trade friction. TO the states, the government should guide correctly, establish an effective international trade coordination mechanism, use WTO rules to protect ourselves, at the same time vigorously develop the domestic market, etc. To enterprises, they should upgrade, develop diversified market and invest overseas factories, etc. To industry association, it should strengthen personnel training, exchange technical, at the same time improve the association service system, etc.EU-China PV trade friction for China’s manufacturing industry has the certain enlightenment. It should attach great importance to the international trade law rules, improve product technology content, strengthen the industry’s international competitiveness. At the same time, the government must have a rational thinking and long-term perspective, and attach importance to both the domestic and foreign markets.In this paper, the innovation is:it studies from China’s export situation and EU demand situation to EU-China PV products trade friction’s present situation and reason. At the same time, it use the prisoner’s dilemma in game theory to analyze trade friction on the influence of the two countries. For price is committed to the solution, using price elasticity to analysis the price impact on PV products export of our country. And it puts forward enlightenment to China’s manufacturing industry.