With China's solar panel industry still facing challenges in the European Union, despite an agreement to overcome anti-dumping penalties, the industry itself in China is looking for ways to cope.

 

　　CRI's Li Dong has more.

 

　　Polycrysilicon is an indispensable raw material in the solar panel manufacturing process. According to statistics, among the 50 major polycrysilicon enterprises nationwide, more than 86 percent have suspended or half suspended their production.

 

　　Chinese solar panel production quadrupled between 2009 and 2011; accounting for more than the entire global demand. The European Commission accused China of dumping its solar panels in Europe at prices lower than the cost of production.

 

　　A price undertaking deal was just reached between China and the EU on August 7 regarding the solar panel dispute. Starting August 6, Chinese solar panel enterprises won't be subject to high punitive duties, but the EU has set a limit on the export volume and minimum price of China's solar panel products.

 

　　Gao Hucheng, minister of China's Ministry of Commerce says the resolution of this dispute provides the domestic solar panel industry with a chance to improve.

 

　　"All the enterprises know that this is a reshuffle and an adjustment for the entire industry. Personally, I think this is a chance for China's enterprises to upgrade and enhance the quality of their products."

 

　　Based on the deal reached by the EU and China, nearly 400 megawatts of production capacity has been rejected by the EU market, meaning the capacity needs to be consumed by China's own domestic market.

 

　　Liang Tian, general manager assistant of Ying Li Green Energy Corporation, says that they have prepared for the fallout from the deal.

 

　　"We mainly rely on building distributed solar power plants. This can consume 130 megawatts of capacity a year. The other solution is to explore new markets like Southeast Asia and Japan, Africa and South America."

 

　　Meanwhile, China's State Council has issued a series of preferential policies to subsidize the domestic solar panel enterprises.

 

　　The policy maintains that by 2015, the total installed capacity of solar panels will reach more than 35 million kilowatts per hour. The policy also provides specific goals with regards to grid connection and the upgrading of China's solar panel industry.

 

　　For CRI, I am Li Dong.