Leading Chinese solar component maker Suntech Power Holdings Co. (STP, K3ND.SG) Wednesday warned that any move by the European Union to impose duties against it could spark a trade war and destroy thousands of jobs in the European solar sector.

"We hope that the European Commission will recognize that any protectionist measures would harm the entire European solar industry and that a misguided trade war would undermine years of progress," Jerry Stokes, president of Suntech Europe, said in a statement.

The statement followed confidential complaints Tuesday by European solar panel makers to the Commission seeking import tariffs on Chinese-made panels, according to a person familiar with the complaint.

The action was brought by SolarWorld AG (SWV.XE), one of Europe 's largest panel makers, and other companies in the industry, the person said. The 27-nation EU is the world's largest market for solar panels.

"Suntech rejects SolarWorld's allegations that it has received illegal subsidies and is dumping solar products in Europe , and will cooperate fully with any investigation," said the company, which describes itself as the world's largest producer of silicon solar modules.

"Protectionist measures would increase the cost of solar energy in Europe and delay the transition from fossil fuels to renewable energy," Mr. Stokes said. "Tariffs would also destroy thousands of jobs in the European solar industry."

"In 2010 and 2011 we procured a total of approximately EUR600 million of equipment and materials from European suppliers. We are concerned that any tariff to support European cell and module manufacturers would damage all other parts of the value chain," according to the statement.

European solar manufacturers have been hit by a flood of Chinese imports that have sharply cut prices in Europe .

Imports from China were 10 times higher in 2011 than they were five years earlier, while the price of panels fell by more than half, according to data from Eurostat, the EU statistical agency. SolarWorld's revenue in Europe last year fell to EUR630 million from EUR895 million in 2009.

In March, the U.S. Department of Commerce imposed provisional antisubsidy duties on Chinese solar equipment companies, then in May ruled that Suntech along with 60 other Chinese exporters would face a 31% antidumping duty. It said the companies had sold their products in the U.S. at less than fair value.

Also in May, Suntech announced it had swung to a first-quarter loss of $133 million compared with a year-ago profit of $31.9 million.

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