Trade Overview - In 2023, China's total trade reached 41.76 trillion RMB, with exports at 23.77 trillion RMB and imports at 17.99 trillion RMB, resulting in a trade surplus of 5.78 trillion RMB. By 2024, the trade surplus is expected to exceed 7 trillion RMB, marking a historical high and making China the largest economy in terms of trade surplus globally [1] - The trade relationship between China and Europe is significant, with both regions being each other's second-largest trading partners, facilitating substantial goods transport via rail and maritime routes [1] Solar Industry Dynamics - China's photovoltaic (PV) industry has gained a competitive edge due to its complete supply chain and supportive policies, leading to significant achievements and competitive pricing, comparable to platforms like Pinduoduo [3][5] - In 2023, China exported 86.6 GW of solar modules to Europe, accounting for 95% of the continent's new installed capacity. However, by the end of 2023, Europe faced a surplus of 50 GW in solar module inventory, complicating market absorption [6] Market Imbalance and Trade Issues - In 2022, China's PV product exports to Europe amounted to 42 billion euros, while European counterparts exported only 2.8 billion euros to China, resulting in a trade deficit of nearly 40 billion euros for Europe [6][10] - The imbalance has prompted European companies to adopt trade protectionism measures against Chinese PV products, aiming to mitigate the significant trade deficit [6] Regulatory and Policy Challenges - The EU has implemented various measures to protect its domestic industry, including trade barriers, anti-dumping investigations, and potential additional tariffs of 35% on Chinese PV products. The EU also allocated 24 billion euros to support local PV production [10][12] - The EU's strategy includes increasing local procurement requirements and enhancing technical standards for PV components, which raises the cost and difficulty for Chinese companies to enter the European market [12] Future Cooperation Potential - Despite existing trade tensions, there is potential for deeper cooperation between China and Europe in the PV sector, driven by the urgent need for climate action and the shared goal of achieving carbon neutrality [12] - Collaborative efforts in technology innovation and standard recognition could pave the way for a mutually beneficial relationship, as both regions work towards enhancing their green energy capabilities [12]