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Overcapacity, shrinking markets loom over Chinese solar industry

Overcapacity, shrinking external markets dampen profit outlook for Chinese solar companies. They have often been hailed as some of Chinas biggest successes in recent times and champions for their efforts in reducing carbon emissions, creating jobs, lowering technology costs and entry barriers.

Boris Sullivan

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The sun no longer seems to be shining brightly for the more than 500 Chinese solar companies

Overcapacity, shrinking external markets dampen profit outlook for Chinese solar companies. They have often been hailed as some of Chinas biggest successes in recent times and champions for their efforts in reducing carbon emissions, creating jobs, lowering technology costs and entry barriers.

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But the sun no longer seems to be shining brightly for the more than 500 Chinese solar companies as trade wars and uncertain overseas prospects are threatening to strain growth prospects and profits.Lower demand from Europe, the biggest export market for Chinese companies, and the plans by some European nations like Germany to do away with solar subsidies along with the rising trade complaints filed by US solar companies have triggered much of the current problems for the industry.

The sun no longer seems to be shining brightly for the more than 500 Chinese solar companies

The sun no longer seems to be shining brightly for the more than 500 Chinese solar companies as trade wars and uncertain overseas prospects are threatening to strain growth prospects and profits

Things have also been further compounded as the ongoing debt crisis in Europe has forced many European nations like Spain to halt subsidies for renewable energy projects.Though most of the companies are banking on the largely untapped domestic market to tide over the crisis, that may not be the case, say experts, pointing to a possible industry shakeout and exit of several small- and mid-sized companies.

Even then the problems may be far from over as the solar industry needs to find markets that can account for its huge output capacity. The production capacity of solar panels in China stands at about 23 gW and currently accounts for more than half of the global output.”Though domestic deployment of solar power in China has started to take off, it alone cannot account for the huge manufacturing capability,” says Zhu Junsheng, president of the China Renewable Energy Industries Association.

via Dark clouds loom over solar industry|Cover Story|chinadaily.com.cn.

China

Clear skies over Asia’s new foreign investment landscape?

East Asia Forum

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Compounding the fallout of the US–China trade war, the global pandemic and recession have caused considerable speculation on the future of foreign investment and global value chains (GVCs). But though there is likely to be some permanent change, it will probably not be as great as politicians expect.

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China

Will Myanmar’s coup help China influence ASEAN?

The Myanmar crisis is becoming increasingly tragic, with the military’s use of lethal force now killing over 60 protestors.

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On 16 January 2021, Chinese Foreign Minister Wang Yi concluded a visit to four ASEAN countries. One destination was Myanmar, the upcoming country coordinator of the ASEAN–China dialogue and now centre of international attention after the country’s military seized power.

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China

Rapid growth in China post-COVID makes it ripe for investment

Being “first in and first out” of COVID-19, China is the only country among the G20 that is thought by the Organisation for Economic Co-operation and Development (OECD) to have increased GDP in 2020.

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China’s economy rebounded sharply.

In January 2020 as the world began to learn of COVID-19, many market observers predicted a challenging year for Asia. While there continue to be headwinds from the health and economic crisis, Asia, and China in particular, has demonstrated comparatively advantageous resilience.

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