China Tries to Fix Solar Panel Problems with Mergers, Reduced Gov. Support
December 24, 2012 8:11 AM
comment(s) - last by
Beijing's solar problems stem from rapid expansion over the past decade and issues with the U.S. and Europe
In response to troubles with its
solar panel manufacturing
, China is trying to get producers to merge.
Beijing, in particular, is facing problems with its solar panel industry and plans to fix it by reducing government support for the industry, encouraging mergers and blocking local leaders from supporting domestic producers.
Beijing's solar problems stem from rapid expansion over the past decade. It offered grants and low-cost loans, which led to many producers crowding the market. The end result was too many producers that flooded the market with supplies and were forced to lower prices in order to compete. The industry is now about $17.5 billion in debt.
Further complicating Beijing's solar issues is conflict with both the U.S. and Europe. Last month, a U.S. trade panel supported tariffs as high as 250 percent on imports of sola panels from China. This occurred after it was discovered that Beijing was subsidizing imports in an inappropriate way and affecting jobs abroad.
The European Union also started investigating complaints that China was subsidizing solar panel exports improperly and hurting both European producers and jobs.
Of course, China denied doing any of the above.
China has involved itself in many solar projects over the years, such as
to achieve 10 percent of its energy production from renewable resources by 2010, reaching 15 percent by 2020 through the use of wind, hydro, biomass and
China Energy Conservation and Environmental Group's (CECEP)
6.68 megawatt solar station
for cheap and efficient growing.
Solar panel companies haven't had an easy time in the U.S., either. Back in September 2011,
Silicon Valley-based solar panel company
Solyndra filed for bankruptcy
after receiving a $535 million government loan in 2009.
Reports stated that the White House pushed the loan ahead despite warnings about the viability of Solyndra in order to meet political deadlines
In October of this year,
, which is a Boston-based company that develops solar inverters, filed for Chapter 11 bankruptcy protection as a result of the poor state of the solar power industry as well as financial earnings
This article is over a month old, voting and posting comments is disabled
RE: makes no sense
12/24/2012 2:25:26 PM
Central government which is Beijing, and local leaders are provincial government & smaller regional government. Same as Federal vs. States, cities, counties, and etc.
Local leaders are graded by the GDP growth of the region he oversees. Stellar growth equal to a fast track to the top. They do whatever they can in their power to provide cheap loans, cheap land to encourage growth. This is often done by the means of public debt. Racking up huge debt on public projects and industry support such as the solar panel industry. Now Beijing doesn't want any more money invested into the solar panel industry, the money will be just funneled into other industry. As you can see, this set up allows a few people who has "connections" to get rich quick at the expense of public.(the people at the forefront of the industry that government supports) After all, it is local official who decides where the money gets spent on with little oversight and they have ability to appropriate land use. This is extremely prone to corruption.
"The whole principle [of censorship] is wrong. It's like demanding that grown men live on skim milk because the baby can't have steak." -- Robert Heinlein
Solar Company Satcon Technology Files for Bankruptcy
October 18, 2012, 12:52 AM
$500 Million Wasted on Bankrupt Solar Panel Company; White House was Warned
September 14, 2011, 4:22 PM
China's Solar Greenhouses Allow Cheap, Efficient Growing in Winter
March 20, 2011, 7:01 PM
China Builds Huge 6.7 MW Solar Power Installation Next to High-Speed Rail
July 22, 2010, 7:20 AM
Chinese Government Commits to World's Largest Solar Power Project
September 9, 2009, 8:32 AM
Texas Chosen as Site for SpaceX's First Commercial Launchpad
August 5, 2014, 1:44 PM
South Carolina Prison Finds Crashed Drone Carrying Drugs, Phones
August 1, 2014, 2:49 PM
NASA's Mars 2020 Rover Gains Seven New Instruments for Exploration
August 1, 2014, 1:30 PM
NASA Opportunity Rover Breaks Record for Most Miles Traveled on Another Planet
July 29, 2014, 1:38 PM
Commercial Drones to Get Privacy Guidelines Via Executive Order
July 25, 2014, 5:34 PM
Pentagon's Priciest Project, F-35, Misses International Debut
July 25, 2014, 10:18 AM
Most Popular Articles
Lumia 830 Gets Major Upgrades Including New 20.1 Megapixel Toshiba Sensor
August 15, 2014, 6:00 PM
Windows Phone, BlackBerry Smartphone Market Share Falls to 2.5%, 0.5% Respectively
August 15, 2014, 9:44 AM
GM Concedes That the Cadillac ELR Doesn’t Really Compete with the Tesla Model S
August 15, 2014, 5:42 PM
Report: Windows 9 “Threshold” Tech Preview Coming Next Month
August 15, 2014, 11:29 AM
Apple Scores Patents, Preps New Reversible USB Plug for iPhone 6 Connector
August 18, 2014, 1:32 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information