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2003, China’s rapid development and the recovery metals, automobile, petrochemical, shipping,
of the world economy caused the prices of energy electronic, communication industries, and real
and mineral resource products to soar. Great estate. In addition, policies aiming to boost performance
market demand caused insufficient supply and a domestic automobile consumption and further
resulting rise in costs of import resource products develop the automobile industry are also being of the three
and the marginal costs of China’s economic planned.
A key component
Changes came in 2008, when a When compared with other energy sources, such
financial crisis broke out in as coal, petroleum, nuclear, and hydropower,
the U.S. and the world solar energy is clean, safe, infinite, and
factors that
economy underwent inexhaustible. It will have an
extensive adjustments. immeasurable impact on the future of
This, coupled with human race. China, with its 9,600,000
the appreciation of square kilometres of territory has an
the U.S. dollar, enormous capacity to reap full benefits
changed the from solar based applications. The
potential solar radiation heat available to
China is equal to 1.73 trillion tons of
standard coal’s heat.
As a result of the implementation of the
“Brightness Project” and SDDX (Song Dian Dao
Xiang, meaning rural electrification) project and the
growth of the world photovoltaic market, China’s
photovoltaic power generating industry has domestic
developed rapidly. Statistics show that by the end
of 2008 the total installed capacity in China’s consumption
photovoltaic systems had reached 200,000 KW.
will be
There were over 50 solar cell-producing
enterprises in China, with a production capacity
crucial to the
of 3.5 million KW, turning out a total of 2,000 MW
of solar cells in 2008. With these figures, China’s
supply solar cell output surpassed that of Japan and
Issue III 2009
and Europe. A complete industrial chain, including
demand activities from raw material production to
relations in photovoltaic system construction, had been
the world’s established. What’s more, China’s hosting of the
energy and mineral 2008 Olympic Games has given rise to an
product market. As a investment boom in its photovoltaic industry.
consequence, resource products in the world
market plummeted. This situation presents China, In a recent announcement, China’s Ministry of
a rapidly growing but resource inadequate country, Finance announced a range of subsidies for local
with a great opportunity to add to its reserve of PV companies that is been seen as a response to
strategic materials and alleviate the previous the global economic recession and the reduction
tensions in the supply and price of resource of subsidies in Spain and Germany that has led to
products. an oversupply of product and a drop in prices.
The government intends to subsidise up to 50 %
The Chinese government’s macro control policies of the investment in a solar power project but
hinge on maintaining growth, expanding domestic there are guidelines to receive this assistance.
demand, and accelerating economic restructuring.
In 2009, China’s Ministry of Industry and While the announced subsidies may not revitalise
Information Technology will focus on promoting the the global industry it will be welcome relief for local
growth of a number of industries, including the companies and offer sales opportunities for a vast
energy, light industry, textile, steel, nonferrous array of international companies.
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