On Friday, the European Union and China were finally moving in the direction of a new contract. A deal would be signed to defuse disagreements. The conflict was on the subject of dumping of solar panels in Europe. EU alleged China for the said offense.

People with knowledge of the said issue stated that EU aimed to make an agreement on the lowest price for Chinese importers. The fee would be above the shipper's production costs.

"The architecture of the deal is there," said one source close to the talks that were taking place in Beijing.

A second person stated that the deal involved a quota for Chinese panels. This would not be sold below the cost of manufacture in China. Analysts said that the cost was around US$0.59 per watt in 2012.

Under the deal, panels sold in excess of the quota would be subject to payment. However, the rate and the volume were still under negotiations, a third source said.