A coalition of over 580 European solar companies have protested against looming anti-dumping duties - to be set at an average of 47%, EU officials said - against Chinese-made solar products.
In the anti-dumping investigation, the deadline for duties to enter into force is June 6 and member states will take the final decision whether to impose definitive duties in December this year.
German economy minister Philipp Roesler says the European Commission's decision to impose punitive duties on Chinese solar panels is a "grave mistake" and urged it to avoid a trade war.
Roesler added that China already warned the average import duties on solar panels would harm bilateral trade. "That shows punitive import duties are the wrong instrument," he said, according to the Welt am Sonntag.
The German minister told the Sunday newspaper that the German government has repeatedly warned of the consequences of punitive import duties against China's solar industry.
"German industry is very concerned and quite rightly," Roesler said. "I expect the commission to do everything to prevent a trade conflict. The commission has to seek a resolution with negotiations and dialogue instead of threats."
China's ambassador to the World Trade Organisation (WTO), Yi Xiaozhun, called the decision a mistake although he declined to comment on any possible retaliation by Beijing.
"It will send the wrong message to the world that protectionism is coming," he told Reuters in Geneva.