China's photovoltaic cell industry will take a heavy blow if the European Union imposes punitive tariffs on imports of Chinese solar panels. And while such tariffs may benefit a small group of domestic players in Europe, they will have an adverse effect on the crisis-hit European economy and global efforts to reduce greenhouse gas emissions.

In May, the United States decided to impose preliminary anti-dumping duties of up to 250 percent on imports of Chinese solar cell products. The EU will decide next month whether to follow the US' lead. If the EU does follow suit, the Chinese makers of solar panels will be squeezed between increased export costs and dwindling markets.

The US and EU regulators, pressured by their local industries, are resorting to trade remedy measures to thwart imports from China, a major player in the global photovoltaic cell industry, despite the fact that past anti-dumping cases show they are the least constructive way to solve such disputes.