EUROPE'S proposed punitive tariffs on Chinese solar products may be avoided, a senior advisor to China's State Council said, as he urged more collaboration in the industry and negotiations.

The European Commission last week agreed to impose provisional duties averaging 47 percent on Chinese solar panels by June 6, accusing Chinese firms of dumping cheap products there.

"I think we still have a chance'' before a final decision on the levies is made in December, said Shi Dinghuan, head of the China Renewable Energy Institute and an adviser to China's Cabinet. "We are bringing some foreign companies to join our alliance to fight against trade barriers and we also call for more inter-government dialogues.''

German magazine Spiegel reported over the weekend Germany fears the tariffs may lead to a trade war, adding that Chancellor Angela Merkel is critical of them.

"If the German government could make its stance clear,'' Shi said on the sidelines of the SNEC 2013 PV Power Expo held in Shanghai, it may reverse course for the European tariffs. Germany was the world's largest photovoltaic market last year.

The adverse external situation also prompted China, the world's biggest solar panel maker, to tap its home market, with industry officials saying the domestic market can boost global demand.

"China no doubt will become the world's largest solar market,'' said Bruce Yung, China managing director for First Solar Inc. He added the US firm seeks cooperation with Chinese partners both inside and outside China.

The worst of China's solar industry, plagued by falling product prices amid weakening demand from Europe, may be gone, officials said

In March, Suntech Power Holdings, once the world's largest solar maker, removed Shi Zhengrong as chairman and sought bankruptcy protection after defaulting on a US$541 million bond repayment. Shi, still a major shareholder, has said he was "unlawfully" removed by the board.