EU Trade Commissioner Karel De Gucht announced the bloc reached an "amicable solution" to a solar trade dispute with China.
The EU planned to impose duties on Chinese solar panels in response to allegations they were sold on the European market at below market cost. The Chinese government targeted the European wine industry in response.
"The Chinese suppliers have agreed to a voluntary price undertaking where they commit to stop dumping and keep prices above a certain floor," he said in a statement Monday. "In return, those companies who participate in this engagement do not have to pay the anti-dumping duties."
Chinese Foreign Minister Wang Yi said the mechanism would help advance environmental agendas and stimulate the global economy, China's official Xinhua News Agency reported.
Chinese-manufactured solar products account for more than half of the global market and are a main source of European imports of renewable energy goods. De Gucht told Euronews the deal would stimulate the renewable energy sector in Europe.
"We have created a window of opportunity for the European industry to recover," he was quoted Tuesday as saying.
Trade groups, however, said the agreement fell short of expectations.
Notable deaths of 2014 [PHOTOS]