Chinese solar companies will have to compete for quotas to export to the European Union and struggle to survive at minimum prices, following the bilateral settlement of one of the biggest trade disputes in the world, industry insiders said.

The European Commission said on Friday that it endorsed a negotiated settlement with China that sets a minimum price and a volume limit on EU imports of Chinese solar panels through the end of 2015.

Chinese manufacturers that participate will be spared EU duties meant to counter alleged "dumping" activities.