(Yicai Global) July 19 -- The senior executive of a Chinese photovoltaic firm who was arrested by German police at Munich Airport last month recently returned to China, according to a report.

The person was arrested on June 12 and allowed to return to China after paying a fine on July 7, China Securities News reported yesterday. The investigation into the executive started by the German authorities may have been connected with the PV minimum import price implemented in China and Europe before 2018, it added.

The executive, from a Changzhou-based PV battery module firm, was taken away at Munich Airport while on his way to the Intersolar Europe expo in the city. He was taken for investigation and later went on to a hotel to do his work at the expo, but after its end, he remained in Germany to assist with the investigation.

Following a temporary arrest, he was allowed to go to his hotel and take part in the exhibition. He remained in Germany after the expo to assist with the investigation.

Germany has been more aggressive in enforcing judicial actions against Chinese firms and individuals who breached the MIP agreement and evaded taxes in recent years, Shawn Qu, chairman of PV modules maker Canadian Solar, was cited as saying by China Securities News.

The MIP mechanism is contrary to the market economy's supply and demand principle, and European solar developers and users are reluctant to pay much higher prices than in other markets, Qu noted. The MIP has many flaws, is impractical, and cannot offer guidance, he said.

The MIP is not a law or regulation but a voluntary contract that any party can join or leave at will, Qu added. He said the constitutionality of prosecuting those who breach the agreement has still to be determined by the German Federal Supreme Court.

Domestic PV companies should be cautious and well-informed, especially when doing business overseas, said Lv Jinbiao, deputy director of the expert committee of the China Nonferrous Metals Industry Association's silicon branch. They should study the laws, regulations, and policy changes of the country where they operate, he added.

A spokesperson for the European Union Chamber of Commerce in China said the incident had had a huge impact on the PV industry and Chinese businesses in Europe, raising concerns about the European Union's business environment.

The person noted that they were closely monitoring the situation and hoped that the German authorities would provide a reasonable explanation and be transparent. If the case was handled improperly or unlawfully, Chinese firms and the Chinese government should seek legal recourse to protect their legitimate rights and interests, the official pointed out.

Editor: Martin Kaidev