— This is the script of CNBC's news report for China's CCTV on June 5, Wednesday.
Welcome to the CNBC Business Daily.
Europe's top trade cop takes steps to avoid a trade war with China. Karel De Gucht slaps a smaller than expected 11.8% tariff on Chinese solar panel makers.
But he warns if Beijing refuses to come to the negotiating table by August 6th, duties will rise to an earlier figure he had floated -- a massive 47.6%.
The move comes after intense pressure from Germany and Britain that were against slapping huge tariffs against Beijing.
Speaking to CNBC, De Gucht dismissed speculation that he had caved into demands to play nice.
[Sound on tape by: Karel De Gucht, European Trade Commissioner: This idea of having a phasing in period is not inspired by whatever member state... that's a proposal... that my services and myself have been making. So it's not as if we have taken over a suggestion or an idea or pressure whatsoever from a member state. No, we thought this was a sensible solution because the Chinese made it clear they were ready to seriously engage in negotiations. ]
And our next guest from Canadian Solar, a manufacturer with operations in China, argued that there was no dumping taking place.
[Sound on tape by: Michael G. Potter, Chief Financial Officer, Canadian Solar: We don't think tariffs are necessary and we think it's detrimental to the solar industry in the EU and to employment overall in the EU.]
[Sound on tape by: Theodore Kassinger, Partner at O'Melveny & Myers: You have suppliers from European countries and U.S. supplying critical components to China and technology. You have production of solar panels going back to both countries, you have all three countries interested in promoting solar power, there's a lot of common interest as well as conflict there, perhaps the European step today will mark a way towards a global settlement of that particularly difficult issue.]
Meantime, Beijing lashed out at the solar tax, calling it unfair. The country's Commerce Ministry said that more consultations were needed before a resolution could be reached. The ministry also announced a new anti-dumping, anti-subsidy probe into European wine.
I'm Chloe Cho, reporting from CNBC's Asian headquarters.