Facing allegations of dumping practices and unfair competition from their American counterparts, Chinese solar panel manufacturers have been quick to address the issue by telling their side of the story.

Returning from a hearing on a dumping case involving solar panels in the US, representatives from the Chinese solar panel industry say they feel perplexed by the accusations, but not defeated.

Chen Zhuo, representative of Chinese Solar Panel Companies, said, "It's clear from the hearing that the accusations are groundless. We are confident in using hard facts to retort their claims."

Accusations brought against Chinese solar panel manufacturers include selling products at below production costs. But according to an industry employee, that's simply not the truth.

Geng Hao, Yingli Group, said, "This set, for example is priced at about 2600 yuan. Its production cost is about 2100, which gives us a profit margin of about 500 yuan."

Geng says almost 90% of his company's products are sold abroad. Roughly 14% are exported to the United States and 66% to Europe. Therefore, export revenues form the vast majority of the company's income.

As to claims of unfair government backing, according to the chairman of one of China's leading solar panel makers, the culprit is in fact the other side.

Qu Xiaohua, Chairman of Canadian Solar Inc., said, "The fact is that the American government is subsidizing its solar power industry. Relatively speaking, Chinese companies get less help from the government. For example, our loans are obtained at market interest rates."

According to analysts, what Chinese solar panel manufacturers are most worried about now is not necessarily the allegations put forward by a few American competitors, but the possibility of a chain reaction the allegations may stir up in their largest market, Europe.