EU imposes levies on Chinese solar panels THE European Commission has imposed anti-dumping duties on imports of Chinese solar panels, defying German-led opposition and dire warnings from Beijing the move could spark a trade war. "Today, the European Commission has decided unanimously to impose (punitive) tariffs" on Chinese solar panels, after finding they were being sold at up to 88 per cent below cost in the European market, EU Trade Commissioner Karel De Gucht said. De Gucht said it "is clear that the dumping" is harming the European solar panel industry, with 25,000 jobs threatened as Chinese companies take 80 per cent of the market. Accordingly, the Commission would levy an initial average tariff of 11.8 per cent from June 6, rising to 47.6 per cent on August 6 in the absence of negotiations based on a Chinese commitment to address the problem. "I want a fair solution with China," De Gucht said, adding that Tuesday's decision opened the way to talks, if Beijing wanted them. The ball is now in China's court. The commissioner insisted that the measures were not protectionist but rather within the EU's rights under international trade law to protect its interests. China has solar panel production capacity equal to 150 per cent of world demand, he said, and that meant they were manufacturing too much. The tariffs are provisional for six months, with EU member states having a vote in December on whether to make them permanent or not. In recent weeks Germany has led growing opposition to the move, winning the support of 17 other member nations including Britain but not France. The commission's decision is its single most important anti-dumping action, covering a market worth 21 billion euros ($A28.32 billion), and follows similar steps in the United States.