CHINA has reiterated its resolve to protect its solar panel and telecommunications equipment makers from being hit by the European Union's hefty tariffs, warning an escalation in trade disputes would cause harm to firms on both sides.

The European Commission, the EU's executive body, plans to impose duties averaging 47 percent on Chinese solar panels from next month, accusing Chinese firms of selling products at below cost - a practice known as dumping. About 21 billion euros (US$27 billion) of Chinese solar exports are at stake.

The EU also said this month it will investigate whether Chinese telecom gear makers receive improper subsidies.

"The Chinese government resolutely opposes trade protectionism in any form, and will not hesitate to safeguard the legitimate rights and interests of Chinese enterprises," Vice Commerce Minister Jiang Yaoping said yesterday in Beijing. "The Chinese government won't sit idly."

Jiang reaffirmed the government's wish to solve these disputes through dialogue and cooperation.

But since it's not surprising for two huge economies, China and Europe, to compete and to have friction in some industries and some products, "the key is 'how we properly handle it,'" Jiang said.

Meanwhile European governments are deeply divided over the duties on the solar panels. Reuters has reported that the majority of EU governments oppose the hefty duties on solar imports from China, as countries from Germany to Britain are fearful of losing business in China.

The EU's threat of imposing tariffs on Chinese telecom giants was also opposed by Ericsson AB and Nokia Siemens Networks.