The European Union and China on Saturday reached an "amicable solution" over imports of Chinese solar panels in the EU market.
The China Chamber of Commerce for Import and Export of Machinery reached the deal with Electronic Products and the European Commission to avoid punitive tariffs from August on Chinese solar panels imports into Europe.
"We found an amicable solution in the EU-China solar panels case that will lead to a new market equilibrium at sustainable prices," China's state-run Xinhua news agency quoted EU Trade Commissioner Karel De Gucht as saying in a statement.
"I am satisfied with the offer of a price undertaking submitted by China's solar panel exporters," he said, referring to an agreement for a minimum price for China's imports.
Meanwhile, the Chinese Ministry of Commerce said China welcomes the deal which "showcased pragmatic and flexible attitudes from both sides and the wisdom to resolve the issue."
According to the Ministry of Commerce spokesman Shen Danyang, resolving the trade dispute is conducive to an open, cooperative, stable and sustainable economic and trade relationship between China and the EU.
He said China is willing to further promote exchanges and cooperation with the EU in the photovoltaic industry field.
Chinese solar panel production quadrupled between 2009 and 2011 to more than the entire global demand, and the Commission accused China of dumping its solar panels at below the cost of production in Europe.
The European Commission on June 4 decided to impose provisional anti-dumping duties on imports of solar panels, cells and wafers from China.
Starting from June 6, EU imports of Chinese solar products was subject to a punitive duty of 11.8 per cent until August 6, from when on, the duty would have been raised to 47.6 per cent if the two sides could not sort out the dispute through negotiations.