Merkel urges China to avoid solar cell clash - Deutsche Welle

Chancellor Angela Merkel has sought to defend Europe's stuttering solar cell industry by urging China to stop alleged price dumping by its manufacturers. She said talks instead of an EU anti-dumping probe should ensue.

Attending German-Chinese trade talks in the northern Chinese port city of Tianjin, Merkel said Germany would ask the EU Commission to waive an anti-dumping probe wanted EU ProSun, a grouping of some 20 European solar companies.

Germany's troubled Q-Cells has a South Korean bidder

Several German firms, seen as pioneers in Germany's drive to replace its nuclear power sector with renewables, have filed for insolvency in recent months. 

In July, ProSun called on Brussels to open a probe, saying their cell prices were undercut by Chinese firms benefiting from state loans and subsidies. Chinese firms retorted that the allegations were "groundless" and warned of a trade war.

Respect fair trade, urges Merkel

At Friday's Tianjin talks, Merkel said Chinese solar firms wanting to compete in Europe must respect EU fairness rules which prohibit subsidies and cheap credit. The EU-China solar issue was still like a "cow on the slippery ice," she warned.

Germany's solar industry blames Chinese dumping for job losses

Merkel said her request to China was "simply to lay its cards on the table."

Chinese premier Wen Jiaboa who hosted Merkel in Tianjin, his home city, said an EU decision not to pursue probes against Chinese firms in the solar and other sectors was a "very important basis for our relationship."

Last year, China exported 60 percent of its solar shipments to the EU while it imported cell-manufacturing equipment and raw materials.

Leading German companies represented at the Tianjin talks called on China to open its market fairly to outside competitors. Peter Löscher, the head of the Munich-based giant Siemens, said German firms expected Chinese manufacturers to respect product certification as well as patents and copyright as international norms.

Wen said China did not intend to constrain its exports of highly sought-after rare earth minerals used to make consumer devices like Smartphones - while admitting that mining them resulted in significant environmental degradation.

Merkel, a former environment minister, proposed Chinese-German cooperation to minimize the damage in China.

Airbus opened its works at Tianjin. China, in 2009

Airbus rollout in Tianjin

To wind up Friday's itinerary, Merkel was due to visit Tianjin's Airbus assembly plant to witness the rollout of its 100th A320. In 2009, Tianjin became home to Airbus' only outer-European facility alongside its plants in Toulouse and Hamburg.

On Thursday, China confirmed that it would purchase of 50 new A320 and sustain the Tianjin plant beyond 2016.

ipj / rc (dpa, AFP, Reuters, dapd)