Allegations of dumping are very easy to make. That person/company is selling a product/service much cheaper than us. Therefore by definition it is dumping. Not more efficient. Not more cost savvy. Not cleverer at mass production. Dumping. It is a splendidly evocative word and easily covers immense sins on the part of the dumpees.
Now China is being accused of dumping solar panels. This time it is the Europeans who are doing the accusing.
China has responded by saying that government subsidies for solar panel manufacturers are only intended to boost domestic penetration of renewable energy. The dispute — which emerged from the acknowledgement of “lavish government support” for the industry from the CEO of China’s largest solar panel manufacturer — has grown in recent weeks.
The controversy arose on August 24, when comments from Shi Zhengrong, head of Wuxi-based solar panel manufacturer Suntech, claiming that the company was selling their panels at a lower price than its marginal cost appeared in the New York Times.
Shi explained that in order to gain market share in the US, where ‘Buy American’ provisions are buoying local industry, his industry was taking advantage of strong government support to sell the panels for less than it cost to manufacture them. Which is what is called "dumping".
Shortly following the publication of the article, European solar manufacturers — led by the German firm Solarworld — called for a "Buy European" provision in order to limit the sale of Chinese panels in Europe.
ICTSD carries the full story which has manufacturers argueing that European protective measures could generate negative impacts on the global economic recovery.