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REGIONAL
help China accelerate its industrial restructuring
and change its mode of economic development.
China’s infrastructure investment will be increased
in 2009. Viewed from the central government’s
2009 investment plan, infrastructure, especially
express railways and urban subways, is the area
that will receive the biggest share of governmental
investment. The construction of express railways
and urban subways is critical to growth and also
fuels the steel, cement, and construction industries
that are now suffering from insufficient market
demands. Moreover, completing these investment
Issue III 2009
projects will significantly improve China’s
transportation capacity.
Chinese domestic consumption will rise steadily in
2009. China’s economy has long been
characterized by a low percentage of domestic
consumption at about 40 percent, which is much
-pv-management.com lower than the average 70 percent level of the
developed world. In the past thirty years since
.solar
In recent
To receive the subsidy, which includes China’s adoption of the reform and opening-up
www
transmission and distribution networks, the policy, China’s economy has grown along the path
years China
eventual output must exceed 300 kilowatt peak of low consumption - high savings - high
40
and the construction must be completed in the investment - large export. The deepening
has been
next twelve months and be able to operate for at economic globalization has provided the perfect
least twenty years. For companies setting up soil for China to stick to this mode of development.
seen as
independent power generation in remote areas the As a result of the global financial crisis and the
subsidy will rise to as much as 70%. ongoing restructuring of the world economy,
the brash however, this development mode will be
Although the announcement may not be what increasingly unsustainable for China. Therefore,
newcomer some parts of the industry was hoping for, it raising domestic consumption levels has become
to the
provides a positive message for China’s an integral part of China’s efforts to maintain
photovoltaic industry. Both locally and steady and rapid economic growth.
electronics
internationally. It also fits in well with the
governments longer term macro economic policies Opportunities available
industry.
of developing industry capacity while improving In recent years China has been seen as the brash
access to the technology throughout the country. newcomer to electronics manufacturing. This is
This is also
also true of the PV industry despite its own relative
Economic future age. Anytime a new element enters the global
true of the
Stable adjustment is the basis of China’s economy market there is a time for adjustment and
in 2009. The growth rate will be maintained at integration. The main change that has occurred is
PV industry
about 8 percent, CPI and PPI will remain at a low the growth of China’s interaction with the world
level of around 3 percent. The country’s economic and subsequent growth as a world player.
despite its
structure is expected to undergo further
improvement. The performance of the three most There is no doubt that doing business in another
own relative
important factors that affect China’s economic country is difficult at the best of times and it is vital
growth, export, investment, and domestic that the best information and data is at hand.
age.
consumption, will be crucial to the eventual China’s market is changing and its overall
outcome. reputation as a global business partner is
improving every year. The one major difference
China’s export growth will slow considerably. As a with China, and maybe one or two other areas, is
result, the country needs to take effective the sheer size of the potential market and how its
measures in 2009 to balance export loss. eventual maturity will help shape the rest of the
Expanding domestic demand and adjustments to global market for many years to come.
the export-oriented sectors are expected. The other
side of the economic coin is that export reduction Further information on the data used can be found
and adjustment of the export-oriented sectors will at www.reportsfromchina.com.
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