AEI reports:

The EU’s blustery, faux tough-guy trade commissioner Karel De Gucht is vowing to implement duties of 47% on all Chinese solar panels imported into EU territory. Only problem is that at last count, 18 of the 27 members of the Union oppose him. This includes the powerful voice of German Chancellor Angela Merkel, who promised Chinese Premier Li Keqiang last weekend that she would do all she could to see to it that there “are no permanent import duties” on solar panels from the PRC.

Merkel’s stance has been joined by Great Britain, the Netherlands, Sweden, and a number of Eastern European nations (of the larger economies, only perpetual trade hawks France and Italy are supporting the Commission). Fully aware of the situation, the Chinese have stepped up pressure on De Gucht. After a brief meeting on Monday, Chinese trade representative Zheng Shan issued a belligerent statement, warning that if the duties were imposed China “would not stand idly by” but would “take necessary steps to defend its national interest.” (read: at least equivalent trade retaliation somewhere else).

Read more: http://www.aei-ideas.org/2013/05/china-has-the-upper-hand-in-solar-panel-standoff-with-eu/