China has issued anti-dumping duties for imports of polysilicon, a solar panel ingredient, from the US and South Korea, escalating trade tensions that have divided the global solar panel industry.

The ruling raises fears in Europe that Beijing could impose similar duties on European polysilicon makers, which have been under investigation by Chinese authorities.

Beijing and Brussels are locked in trade negotiations over Chinese exports of solar panels to Europe, and have to reach an agreement on Chinese solar imports before an August 6 deadline. The trade case, which is the European Commission’s largest, imposed duties of 11 per cent on Chinese solar panels, which will rise to an average of 47 per cent if a deal is not reached by the deadline.