China offers solar panel quota to settle EU feud

China has offered a quota for its solar panel exports to the European Union, state media reported Friday with the two sides embroiled in a series of trade disputes.

But the amount is less than 20 percent below total Chinese exports last year, and conditional on their being taxed at low or zero rates, the Shanghai Securities News said.

The two economic giants are in negotiations after the EU last month imposed an average anti-dumping tariff of 11.8 percent on solar panel imports from China.

The tax will rise to more than 47 percent next month if no deal is reached.

Brussels and Beijing are also involved in a series of disputes covering other products ranging from steel pipes and telecom equipment to wine and chemicals, sparking fears of a trade war.

China offered to cap its annual exports of solar components to the EU at 10 gigawatts, or half of the country's yearly output, the newspaper said, citing Wang Sicheng, a researcher with top economic planning agency National Development and Reform Commission.

But shipments within the quota should be either tariff free or low rate, it said, and those over the limit taxed "according to relevant rules".

Last year, China sold solar components with a generating capacity of 12 gigawatts of the EU's total of 16.9 gigawatts installed over the year, according to previous Chinese media reports.

Beijing is trying to expand the domestic market to help the sector, which is reeling from severe overcapacity.