The ongoing trade dispute between China, the EU and the U.S. over solar panel imports continues to escalate. Earlier today, the European Union launched an investigation into alleged state subsidies for Chinese solar panel manufacturers, adding fuel to the fire on already existing trade conflicts between the two.
The probe follows a complaint by the EU’s ProSun group of 25 European solar panel companies led by Germany’s SolarWorld, alleging the Chinese government provided subsidies only to local firms. The anti-subsidy case comes after an anti-dumping investigation on Chinese solar panel exports, which was initiated by the same group of companies.
Over the past week, China from its side has lodged a complaint with the WTO, saying Italy and Greece have illegally promoted domestic panel producers and warned it could impose tariffs on EU exports of the raw material poly-silicon used to make solar panels.