TRUE OR FALSE. Are some “97% of European solar panels” imported from China, as Manon Aubry claims?

In the middle of Chinese President Xi Jinping’s state visit, the head of the France insoumise to European list assures that France’s trade deficit with China is “major”, amounting to “40 billion euros”. She points in particular to the problem of photovoltaic panels.

From the Élysée to the Col du Tourmalet, Chinese President Xi Jiping continues his official visit to France on Tuesday May 7. Trade tensions are at the heart of discussions, Emmanuel Macron calling for trade rules “fair”. For the head of the France insoumise list in the European elections, Manon Aubry, there is indeed a real problem: “We have a major trade deficit with China, it’s 40 billion euros out of the 100 billion trade deficit”, she said on Public Senate. True or false ?

More products purchased from China

It’s true, it’s even more. France’s trade deficit with China will reach 46.2 billion euros in 2023, according to French customs data. It even amounted to 54.1 billion in 2022, after a record increase. This is France’s worst bilateral trade deficit, as shown by the annual results of French customs. France buys many more products from China than it sells there. Clothing, computers and even toys are the main products sent to France. China is even the second country from which Paris buys the most products, behind Germany.

This trade deficit has only been widening over the past twenty years, and China’s entry into the World Trade Organization (WTO) in 2001. The deficit has been multiplied by nine, we can calculate from customs data. From 2001, customs duties fell with China and trade exploded. But imports grew faster than exports. So the deficit is growing. China can mass produce at low cost. The cost of labor is notably lower than in France. The European Union also accuses China of subsidizing activities, then exported to Europe, and in particular renewable energies. Several investigations have been launched by the European Union.

The massive importation of solar panels

Manon Aubry rightly cites the example of Chinese photovoltaic panels: “We have 97% of European solar panels which are imported, most of which come from China.”. It is true that the majority of European solar panels come from abroad, said the European Commission. Among them, 96% of the panels are Chinese, indicates Eurostat. Imports of Chinese solar panels have exploded over the past two years.

China has indeed invested heavily in the sector in recent years. It has developed an entire sector and has low-cost raw materials. It has thus become the world’s leading producer of photovoltaic panels. But recently, it has no longer been able to sell all its stocks on its internal market. It therefore turns to Europe and cuts prices. European factories cannot keep up, like the French manufacturer Systovi, placed in compulsory liquidation and which ceased its activity a few weeks ago.