The row between European Union (EU) and China pertaining solar panels would sever the ties between the trade relations between the two markets if not resolved, warns Chinese Premier Li Keqiang.

Keqiang further stated that the issues would impact the solar industry, enterprises and employment in China, alongside personal interests of users and consumers in Europe.

The statements were made ahead of a meeting between European Commission on 27 May 2013 to dissolve solar trade disputes.

Keqiang hopes that EU would uphold the principles of free trade while keeping China-EU economic and trade relations in mind, reported The Economic Times citing Xinhua.

Issues between the two parties started after European commissioner planned to impose heavy import taxes on solar panels manufactured in China in a bid to reduce its foothold in the European market.

EU accused China of dumping its overloaded solar panels production into EU market in the wake of dropping prices of the commodities.

The Chinese Premiere notified EU that heavy import charges risk promoting protectionism, besides harming companies and employment in China.

"In the current economic circumstances all countries should strive to maintain a stable and open international trade environment and be cautious in using trade remedy measures."