Chinese Solar Firm Revises Solar panel prices

HONG KONG — The chief executive of the biggest Chinese solar panel maker on Wednesday reversed a statement that his company was selling below marginal cost in the United States, while a leading solar company in Germany has begun calling for a “Buy European” rule.

Shi Zhengrong of Suntech, which makes solar panels, said he had misunderstood a question concerning pricing of the panels.

Shi Zhengrong, the chief executive and founder of Suntech Power Holdings, said in a telephone call Wednesday that he had misunderstood the question when he said twice in a recent interview that his company was selling panels in the United States below the marginal cost of producing each additional unit.

Dr. Shi’s revised comments came a day after Frank H. Asbeck, chief executive of SolarWorld in Germany, said that Europe should institute a “Buy European” policy for solar panels used in public projects. Mr. Asbeck pointed to the “Buy American” provision for construction projects in the United States supported by money from the stimulus legislation.

The actions of the two companies highlighted the increasing tension over a crucial energy industry. Western governments are mandating the use of more renewable energy but face a dilemma over whether to encourage the purchase of low-cost imports from China or often higher-cost products made at home.