The China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) announces that China CCCME has reached an agreement to resolve the solar panel trade dispute with European Commission on July 27^th. The solar panel trade dispute is known as the largest amount of "dual" (anti-dumping and anti-subsidy) case in China-EU trade history so far. The two sides solve the dispute through consultation to avoid escalation of the dispute between China-EU bilateral trades.

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After six weeks of negotiations, EU's trade chief and China's trade chief reached the deal to set a minimum price for panels from China. The price should always be near the current spot market price. The China CCCME, which led the negotiations on behalf of Chinese solar panel producers, promised that Chinese solar panels would be sold at a minimum price of 56-euro cents per watt when imported to EU. In exchange, EU will not impose provisional anti-dumping duties on imports of solar panels, cells and wafers from China.

Chinese Ministry of Commerce spokesman Shen Danyang spoke highly of the agreement. "As Chinese volume of trade with EU is huge, it is normal for trade frictions to exist between China and EU. We should view these frictions from a rational perspective and resolve the trade dispute by consultation."

EU Trade Commissioner Karel De Gucht said: "We are confident that this price undertaking will stabilize the European solar panel market and will remove the injury that the dumping practices have caused to the European industry."

The EU is China's most important trading partner, while for EU, China is second largest trading partner only after the United States. Chinese exports of goods to the bloc totaled 290 billion euros last year, with 144 billion euros going the other way.