The agreement between the EU and China relates to the fixing of a minimum price for Chinese solar panels in Europe. CCTV correspondent Stella Lee has more on how this price is to be fixed and what this means for Chinese solar panel manufacturers.

Finally, Chinese solar panel makers can look forward to a sunnier outlook on the European market. After months of wrangling, the EU and China have agreed to a minimum price level for Chinese solar panels.

According to analysts, this will effectively price in a small incremental cost to the panels, equivalent to a tax rate well below anti-dumping duties.

"The rate is only about 6 percent of the taxation, so if its 56 cents, then it's quite alright for Chinese producers," said Chen Jiahe, market analyst at Cinda Securities.

The commission has not released details of the final price but many believe it's close to spot prices for Chinese solar panels in Europe last month.

Observers say the deal reflects an understanding between the EU and China in reaching an amicable agreement on the trade dispute. Chinese solar panel manufacturers have breathed a sigh of relief at the agreement.

"Both parties are sitting on the bargaining table. China has so many factories and so many workers who depend on this industry," Chen Jiahe said.

EU tariffs were previously slapped on Chinese panels under accusations of dumping below production costs in Europe.

China, the world's largest solar panel producer, has a 21 billion euro solar export market in Europe with companies such as Yingli Green Energy prime players in the market.

A spokesperson from the company said it will be ready to implement the necessary changed strategy once more details are forthcoming from the EU commission.