China is prepared to set anti-dumping duties on polysilicon, a raw material used in the production of solar panels, after determining it was being sold below cost, according to two sources. The Ministry of Commerce has completed probes determining the United States and European Union are subsidizing producers, but said that it would hold off on setting duties until the EU issues its own anti-dumping duties against China. Earlier this month, an anonymous EU commerce official said that it may set duties as high as 67.9% on Chinese panels by June 6, averaging 47.6% and affecting over 100 companies. In addition, the United States began a probe in 2011 after falling panel prices led to the collapse of several U.S. solar businesses. Meanwhile, China warned last week that EU duties on Chinese panels would "seriously harm" bilateral trade ties. Ministry of Commerce spokesman Shen Danyang said he hoped reports on the duties were unreliable, but that "if this information is true, this action by the European Union would seriously harm China-Europe trade relations." Tension between the two powers is already high--18 of the EU's 31 current trade probes involve China, and the solar case involves almost $27 billion of Chinese panels. For the full story, see http://www.bloomberg.com/news/2013-05-16/china-said-to-prepare-anti-dumping-duties-on-polysilicon-imports.html and http://uk.reuters.com/article/2013/05/16/us-china-eu-solar-idUKBRE94F0BD20130516. Earlier: http://elr.info/international/international-update/eu-impose-duties-chinese-panels.