China lodges complaint on EU solar subsidies

CHINA lodged a complaint with the World Trade Organization yesterday to challenge the European Union's support for its solar power components industry, adding to growing claims of unfair competition in the sector.

The move also shows increasing concern by WTO members for "local content requirements" - countries insisting on domestic producers supplying a certain portion of a particular project. That is normally a breach of WTO rules as it discriminates against foreign firms.

China's Ministry of Commerce said some EU countries' laws provided subsidies for solar power generation if components for the projects were produced in Europe.

"(The subsidies) constitute a violation of WTO prohibitions on import replacement subsidies, seriously affect Chinese exports, and harm China's rightful interests as a WTO member," ministry spokesman Shen Danyang said.

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