Munich-based Wacker Chemie has reached a two-year agreement with the Chinese government on pricing of polysilicon exports.

The deal running from May 1, 2014 to Apr. 1, 2016, sets the price of product the German company - world's largest producer of polysilicon - sells to customers in the People's Republic.

In return, China's Ministry of Commerce (MOFCOM) will refrain from leveraging anti-dumping and anti-subsidy tariffs. The two sides have decline to disclose any further details.

In late 2012, the Chinese ministry launched an investigation into European imports of solar-grade polysilicon, apparently in retaliation for an anti-dumping probe by the European Union into imports of photovoltaic wafers, cells and modules from China.

"I am pleased that existing differences concerning the prices for our polysilicon exports to China have been successfully resolved through dialogue," Wacker CEO Rudolf Staudigl said, commenting on the agreement he said is "in the best interests of both Wacker and China's solar industry."

Staudigl praised the deal as "an excellent example of how conflicting opinions in trade issues can be amicably solved through constructive discussions and negotiations based on trust."

EU trade commissioner Karel De Gucht expressed satisfaction that China would not pursue its proposed anti-dumping duties. This means, he said, that "our industry will be able to pursue its operations in China where there is a substantial demand for high quality polysilicon.

"The European Commission and the German government have worked hand in hand over the last couple of months to strongly support Wacker Chemie in its negotiation for an economically viable minimum import price. I am confident the removal of this trade irritant will strengthen the EU-China bilateral relationship," De Gucht added.

China imposed anti-dumping and anti-subsidy duties on U.S. polysilicon imports in 2013. It made the charges  permanent in January after U.S. authorities suggested they might expand anti-dumping and countervailing duties on Chinese and Taiwanese solar products.