(File Photo)

China has responded positively to the decision of the European Union (EU) to loosen trade restrictions on Chinese solar panels.

The EU has taken "a positive step" to put the photovoltaic (PV) panel trade back on track as soon as possible, Wang Hejun, head of the Ministry of Commerce's trade remedy and investigation bureau, said Monday in a statement.

China has noticed that the European Commission, the EU's executive body, took into consideration opinions from the Chinese government and firms during its mid-term review of trade measures, Wang said.

Wang welcomes the move, as there will be no caps on import volume and the minimum price will be lowered gradually.

The EU announced that it would progressively reduce the minimum prices for which Chinese solar panel makers are allowed to sell their products in Europe. The prices will be cut every three months, first on October 1 and finally on July 1 next year.

"China hopes the EU could completely terminate its trade restrictions on Chinese PV products to provide a more stable and predictable business environment and achieve mutual benefits in the sector," Wang said.

The EU started imposing hefty tariffs on Chinese solar panels in 2013 and extended trade measures at the end of 2015 and the beginning of 2017.

Chinese companies that sell below the set minimum prices are subject to import duties of up to 64.9 percent.