"Europe and China Agree to Settle Solar Panel Fight"

"BRUSSELS — The European Union’s trade chief said on Saturday that a deal had been reached with China to settle a dispute over exports of low-cost solar panels that had threatened to set off a wider trade war between two of the world’s largest economies."

"The settlement essentially involves setting a fairly high minimum price for sales of Chinese-made solar panels in the European Union to try to prevent them from undercutting European producers. Those producers accused Chinese manufacturers of benefiting from enormous loans from state-owned banks and other government assistance that enabled them to charge prices that would otherwise be uneconomical.

'We have found an amicable solution that will result in a new equilibrium on the European solar panel market at a sustainable price level,' Karel De Gucht, the European trade commissioner, said in a statement."

James Kanter And Keith Bradsher report for the New York Times July 27, 2013.

Source: NY Times, 07/29/2013