b'Mr De Gucht, he says, is not a politicianclosures - than they are for a Brussels of emotion - hes a very rational decisionbureaucracy. With China, in particular, the maker geopolitical relationship has become almost .too important to national capitals to entrust Upon taking up the EU trade job four yearsto the commission, he argues. ago, Mr De Gucht set up a China expert group to deepen his knowledge about theThere is a genuine uneasiness among Middle Kingdom.European governments about being in the back seat, he says. Early in his term, aides say, the commissioner came to two conclusions. First, heWhen the member states shifted in May, Mr determined that a vast programme ofDe Gucht had no choice but to seek a deal. Chinese government subsidies - includingWithout one, there was the risk that he would cheap electricity, financing and property -lose in December when - under EU rules was fuelling the countrys manufacturing- member states would have the power to dominance. Second, and equally importantlyblock a commission proposal for so-called from a tactical standpoint, he believed Beijingfinalduties. was stifling the usual trade complaints from EU companies by threatening to shut themThe settlement centres on a commitment out of the Chinese market.by about 90 participatingChinese solar companies to charge a minimum price in The solar case has featured elements ofthe EU of 56 cents for every watt that their both. It was spearheaded by SolarWorld, aequipment can produce. All others will face once high-flying German manufacturer thatduties averaging 47 per cent. lost 476 million last year. Critics stress that the price floor is in line Beijing responded skilfully. In addition towith Chinese prices and is just half the lobbying national capitals against the case,level that the commission had last year it opened its own trade investigation intodeemed necessary to remedy the injury from imported European wine that unsettleddumping. They also note that final duties in France and Mediterranean governments thatEU cases typically last five years while the tend to be the commissionsmost reliablesettlement will expire at the end of 2015. supporters in trade defence cases. Next it unnerved Germany, which sent 67bn inItsabsolutely not rational, says Milan exports to China last year, by threatening toNitzschke, the president of EU ProSun, bring a separate case against automobiles.the SolarWorld-led coalition of European Chinese solar companies also helped tomanufacturers that is now threatening to sue bankroll a vigorous lobbying campaign bythe commission . It had sought a price of 80 the European retailers that benefit from theircents per watt. EU officials concede the price inexpensive products.Their chief argumentis low but they emphasise a separate feature was that tariffs would drive up prices,that will limit the duty-free Chinese exports undermining the EUs environmental policyto 7 gigawatts per year. With the EU market and costing thousands of jobs.expected to be 10- 12GWs this year, that means European manufacturers should be To Hosuk Lee-Makiyama, director of theable to compete for 3-5GWs. European Centre for International Political Economy, the stakes are more tangible inThe effect will be that the European industry trade skirmishes for an elected governmentwill have the space to regain its previously - responsible for job losses and factoryheld market share, Mr De Gucht said.220'