The impact of trade policy on global production networks: the solar panel case

ABSTRACT

This paper seeks to shed light on the interactions between public institutions and global production networks (GPNs) through a case study of the 2012–2013 European Union anti-dumping investigation on Chinese solar panels. Drawing on trade data and interviews, as well as press reports and position papers, I analyze the facts of the case and the debate around it and explore the impacts on the geography of production. The case draws attention to two issues which deserve greater attention in research in the GPN tradition. First, the position of companies within a GPN may dictate their political interests more clearly than their nationality. Second, GPNs are seen to be malleable. They can adjust their structures in reaction to new trade restrictions. This fact draws attention to the need to incorporate institutional factors, like trade policy, more effectively into GPN analysis. I propose some criteria to help researchers to do so. Finally, in terms of broader political economy, the case illustrates how, in the post financial crisis context, their domestic market is becoming an important lever for the Chinese government in international negotiations. Thus, at least in the trade sphere, the rise of China as a consumer market is changing global power relations.

KEYWORDS:

• global production networks
• trade policy
• EU
• China
• solar panel industry
• anti-dumping

ACKNOWLEDGEMENTS

This research was undertaken in the context of the POREEN Marie Curie research network (www.poreen.eu). The author thanks Florence Palpacuer and Khalid Nadvi, as well as the other members of her Habilitation Committee, for their help in clarifying her ideas on GPNs. Thanks to anonymous reviewers for very helpful and constructive comments.

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

1 See http://www.prosun.org/cost-eu-action.html for the key pro-anti-dumping arguments.

2 See http://afase.org/en for arguments against anti-dumping action.

3 In EU trade figures, PV cells and panels are merged with some related equipment in HS line 854140: photosensitive semiconductor devices, photovoltaic cells and panels; light emitting diodes.

4 US trade figures provide more detail than EU figures and enable us to extract trade in PV cells made up into panels – 8541406020 – and PV cells – 8541406030.

Additional information

Funding

This research was part funded by the EU Marie Curie programme IRSES [grant number GA 318909].

Notes on contributors

Louise Curran

Louise Curran is a lecturer in International Business in Toulouse Business School (TBS). Her research focuses on the impact of trade policy on trade flows. Her publications cover both analysis of the structure and evolution of trade flows at different levels of the value chain and the impact of anti-dumping actions, preferential trade regimes, quotas and free trade agreements on trade.