How much worry can China Photovoltaic have when Trade disputes slow down?-Shanghai Metals Market

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How much worry can China Photovoltaic have when Trade disputes slow down?

Translation 10:40:38AM Jul 04, 2019 Source:Polaris solar photovoltaic network
The content below was translated by Tencent automatically for reference.

SMM News: at the meeting between the heads of state of China and the United States on June 29, China and the United States agreed to resume economic and trade consultations on the basis of equality and mutual respect; at the same time, the US side said that it would no longer impose new tariffs on Chinese exports; the economic and trade teams of the two countries will discuss specific issues. In addition, Trump also agreed at a press conference to let US companies continue to sell products to Huawei.

When the news came, the country was full of jubilation. For the current situation, this is the best news at this stage. If an important cooperation agreement is reached in the future negotiations, it is believed that it will undoubtedly be a major benefit for China's transforming economy.

In fact, in recent years, Chinese photovoltaic has developed into a strategic emerging industry with international competitive advantage, and has been repeatedly mentioned in trade disputes. So, as a "tried and tested soldier" in international disputes, what is the situation of photovoltaic in China?

With the wind and rain still breaking through the waves

When it comes to Sino-US photovoltaic trade frictions, it has to be traced back to 2011.

In 2011, Germany's SolarWorld US branch, together with six other manufacturers, formally applied to the US Department of Commerce for a "double reverse" investigation into Chinese photovoltaic products.

A year later, the (ITC) of the United States International Trade Commission made a final ruling, finding that imports of crystalline silicon photovoltaic cells and components from China had substantially damaged relevant industries in the United States, and that the United States would impose anti-dumping and countervailing duties on such products, and decided in December 2012 to impose anti-dumping and countervailing duties ranging from 29.18 per cent to 254.66 per cent.

Since then, the United States launched a second "double negative" survey against China in 2014, and in 2017 the United States launched a 201 survey and was prepared to impose tariffs (30 per cent in the first year and then 5 per cent year by year). Photovoltaic products were added to the US $50 billion tax list on our country in 2018 as trade frictions escalated (25 per cent tax increase).

Worst of all, since 2012, the European Commission has launched an anti-dumping investigation into imports of photovoltaic panels, photovoltaic cells and other photovoltaic modules from China. Since then, Chinese photovoltaic companies have also been hit hard in the European market.

Under the oppression of a series of heavy blows from the United States and Europe to crack down on Chinese photovoltaic enterprises, China has also fought back. In 2012, China officially launched an anti-dumping investigation on imported solar grade polysilicon originated in the United States and South Korea, and an anti-subsidy investigation on imported solar grade polysilicon originated in the United States, and ruled on it the following year.

In the following years, centering on the investigation and reaction of the "double negative", China's photovoltaic industry advanced in the struggle and developed in twists and turns.

Lead the rise of the global domestic market

Since 2013, China's domestic photovoltaic market has begun to emerge as a new force, getting rid of the embarrassing situation of "two heads out" that have bound China's photovoltaic industry for many years.

In 2013, the new installed capacity of photovoltaic power generation in China is 12.92GW, including 12.12GW photovoltaic power station and 800MW distributed photovoltaic power station.

In 2014, the new installed capacity of photovoltaic power generation in China is 10.6GW, of which 8.55GW for photovoltaic power stations and 2.05GW for distributed photovoltaic power stations.

In 2015, the new installed capacity of photovoltaic power generation in China is 15.13GW, including 13.74GW of photovoltaic power stations and 1.39GW of distributed photovoltaic power stations.

In 2016, the new installed capacity of photovoltaic power generation in China is 34.54GW, including 30.3GW photovoltaic power station and 4.24GW distributed photovoltaic power station.

In 2017, the new installed capacity of photovoltaic power generation in China is 53.06GW, of which 33.62GW for photovoltaic power stations and 19.44GW for distributed photovoltaic power stations.

In 2018, the new installed capacity of photovoltaic power generation in China is 44.26GW, including 23.3GW photovoltaic power station and 20.96GW distributed photovoltaic power station.

Data show that by the end of 2018, the cumulative installed capacity of photovoltaic power generation in China has reached 174 million kilowatts. Among them, the new installed capacity has ranked first in the world for six consecutive years, and the cumulative photovoltaic installed capacity has ranked first in the world for four consecutive years.

In other words, China photovoltaic has developed into a strategic emerging industry with international competitive advantage, and at the same time, it has also become another "China business card" after the high-speed rail.

The changing industry ushered in a turn for the better

When the time came to 2019, the Sino-US photovoltaic struggle also rose and fell with the rise and fall of Sino-US economic and trade disputes.

On May 9 this year, the US government announced that with effect from May 10, 2019, the tariff rate on US $200 billion listed goods imported from China would be raised from 10 per cent to 25 per cent. The Chinese side has also responded by raising tariffs on some imports originating in the United States from 00: 00 on June 1, 2019. Tariffs of 25 per cent will be imposed on 2493 items, 20 per cent on 1078 items and 10 per cent on 974 items, the announcement said. A tariff of 5 per cent is still imposed on 595 items.

However, in mid-June, the office of the u. S. trade representative accidentally announced exemption from the 201 tariff clause for Chinese double-sided photovoltaic modules from June 13, exempt from an additional 25% tariff. According to reports, the United States, through the Federal Trade Department, ruled that double-sided solar modules are no longer bound by Section 201, that is, the export of double-sided solar modules to the United States will no longer impose a 25% tariff.

Outside interpretation believes that the U. S. exemption of double-sided solar module tariffs, mainly due to domestic photovoltaic capacity can not meet customer demand. The exemption will effectively reduce the import costs of related photovoltaic products, which is considered to be a victory for Chinese photovoltaic enterprises.

What is even more gratifying is that at the meeting between the heads of state of China and the United States held at the end of June this year, the two sides agreed to resume economic and trade consultations on the basis of equality and mutual respect, and at the same time, the US side no longer imposed new tariffs on Chinese exports. The important consensus reached between China and the United States this time has swept away the haze that has been deposited over the economic and trade relations between the two sides for many days. This is also a great benefit to the photovoltaic industry, which is suffering from the "double negative".

The haze gradually dissipated and photovoltaic was waiting for the opportunity.

For now, despite the easing of trade disputes between China and the United States, it is believed that China and the United States will be able to reach a win-win agreement on equality and mutual benefit in the near future, but it may not be time to cheer for China's photovoltaic industry.

It is undeniable that after more than 20 years of development and efforts, China's photovoltaic industry has made remarkable achievements, from a minority industry that depends on foreign technology and market, has developed into a "China business card" leading the world from technology to shipment.

However, at present, the development of China's photovoltaic industry is still facing many problems and challenges. As far as the domestic market is concerned, the problems such as light power restriction, subsidy arrears, financing difficulties, lack of market norms and standards are still very prominent. In addition, the new photovoltaic policy comes out of Taiwan, subsidy retreat accelerated, it is bound to force enterprises to improve the technical level to reduce production costs, as soon as possible to achieve affordable access to the Internet.

In fact, under the influence of the "531 New deal" last year, China's photovoltaic industry has also suffered a major blow. In 2018, the number of new photovoltaic installations in China decreased by 8.8GW, or 16.58%, compared with the same period last year. With the retreat of photovoltaic subsidies and the acceleration of affordable Internet access, the latest data also show that China added 5.2GW photovoltaic capacity in the first quarter of this year, down 46.11 percent from the same period last year. It can be seen that the current development situation of the photovoltaic industry is not very optimistic. The official release of the list of the first batch of photovoltaic parity projects this year also marks that the photovoltaic industry is about to enter a new era.

Then, in the face of the gradual withdrawal of photovoltaic subsidy policy, the accelerated pace of affordable access to the Internet, and the blowing of the horn of the new era of photovoltaic, China's photovoltaic enterprises urgently need to change their development ideas, vigorously improve product quality and technical level, and constantly reduce production costs. Enhance their own competitiveness, promote high-quality and efficient development, and promote the arrival of the era of affordable Internet access in an all-round way.

Key Words:  Photovoltaic  trade  China 

How much worry can China Photovoltaic have when Trade disputes slow down?

Translation 10:40:38AM Jul 04, 2019 Source:Polaris solar photovoltaic network
The content below was translated by Tencent automatically for reference.

SMM News: at the meeting between the heads of state of China and the United States on June 29, China and the United States agreed to resume economic and trade consultations on the basis of equality and mutual respect; at the same time, the US side said that it would no longer impose new tariffs on Chinese exports; the economic and trade teams of the two countries will discuss specific issues. In addition, Trump also agreed at a press conference to let US companies continue to sell products to Huawei.

When the news came, the country was full of jubilation. For the current situation, this is the best news at this stage. If an important cooperation agreement is reached in the future negotiations, it is believed that it will undoubtedly be a major benefit for China's transforming economy.

In fact, in recent years, Chinese photovoltaic has developed into a strategic emerging industry with international competitive advantage, and has been repeatedly mentioned in trade disputes. So, as a "tried and tested soldier" in international disputes, what is the situation of photovoltaic in China?

With the wind and rain still breaking through the waves

When it comes to Sino-US photovoltaic trade frictions, it has to be traced back to 2011.

In 2011, Germany's SolarWorld US branch, together with six other manufacturers, formally applied to the US Department of Commerce for a "double reverse" investigation into Chinese photovoltaic products.

A year later, the (ITC) of the United States International Trade Commission made a final ruling, finding that imports of crystalline silicon photovoltaic cells and components from China had substantially damaged relevant industries in the United States, and that the United States would impose anti-dumping and countervailing duties on such products, and decided in December 2012 to impose anti-dumping and countervailing duties ranging from 29.18 per cent to 254.66 per cent.

Since then, the United States launched a second "double negative" survey against China in 2014, and in 2017 the United States launched a 201 survey and was prepared to impose tariffs (30 per cent in the first year and then 5 per cent year by year). Photovoltaic products were added to the US $50 billion tax list on our country in 2018 as trade frictions escalated (25 per cent tax increase).

Worst of all, since 2012, the European Commission has launched an anti-dumping investigation into imports of photovoltaic panels, photovoltaic cells and other photovoltaic modules from China. Since then, Chinese photovoltaic companies have also been hit hard in the European market.

Under the oppression of a series of heavy blows from the United States and Europe to crack down on Chinese photovoltaic enterprises, China has also fought back. In 2012, China officially launched an anti-dumping investigation on imported solar grade polysilicon originated in the United States and South Korea, and an anti-subsidy investigation on imported solar grade polysilicon originated in the United States, and ruled on it the following year.

In the following years, centering on the investigation and reaction of the "double negative", China's photovoltaic industry advanced in the struggle and developed in twists and turns.

Lead the rise of the global domestic market

Since 2013, China's domestic photovoltaic market has begun to emerge as a new force, getting rid of the embarrassing situation of "two heads out" that have bound China's photovoltaic industry for many years.

In 2013, the new installed capacity of photovoltaic power generation in China is 12.92GW, including 12.12GW photovoltaic power station and 800MW distributed photovoltaic power station.

In 2014, the new installed capacity of photovoltaic power generation in China is 10.6GW, of which 8.55GW for photovoltaic power stations and 2.05GW for distributed photovoltaic power stations.

In 2015, the new installed capacity of photovoltaic power generation in China is 15.13GW, including 13.74GW of photovoltaic power stations and 1.39GW of distributed photovoltaic power stations.

In 2016, the new installed capacity of photovoltaic power generation in China is 34.54GW, including 30.3GW photovoltaic power station and 4.24GW distributed photovoltaic power station.

In 2017, the new installed capacity of photovoltaic power generation in China is 53.06GW, of which 33.62GW for photovoltaic power stations and 19.44GW for distributed photovoltaic power stations.

In 2018, the new installed capacity of photovoltaic power generation in China is 44.26GW, including 23.3GW photovoltaic power station and 20.96GW distributed photovoltaic power station.

Data show that by the end of 2018, the cumulative installed capacity of photovoltaic power generation in China has reached 174 million kilowatts. Among them, the new installed capacity has ranked first in the world for six consecutive years, and the cumulative photovoltaic installed capacity has ranked first in the world for four consecutive years.

In other words, China photovoltaic has developed into a strategic emerging industry with international competitive advantage, and at the same time, it has also become another "China business card" after the high-speed rail.

The changing industry ushered in a turn for the better

When the time came to 2019, the Sino-US photovoltaic struggle also rose and fell with the rise and fall of Sino-US economic and trade disputes.

On May 9 this year, the US government announced that with effect from May 10, 2019, the tariff rate on US $200 billion listed goods imported from China would be raised from 10 per cent to 25 per cent. The Chinese side has also responded by raising tariffs on some imports originating in the United States from 00: 00 on June 1, 2019. Tariffs of 25 per cent will be imposed on 2493 items, 20 per cent on 1078 items and 10 per cent on 974 items, the announcement said. A tariff of 5 per cent is still imposed on 595 items.

However, in mid-June, the office of the u. S. trade representative accidentally announced exemption from the 201 tariff clause for Chinese double-sided photovoltaic modules from June 13, exempt from an additional 25% tariff. According to reports, the United States, through the Federal Trade Department, ruled that double-sided solar modules are no longer bound by Section 201, that is, the export of double-sided solar modules to the United States will no longer impose a 25% tariff.

Outside interpretation believes that the U. S. exemption of double-sided solar module tariffs, mainly due to domestic photovoltaic capacity can not meet customer demand. The exemption will effectively reduce the import costs of related photovoltaic products, which is considered to be a victory for Chinese photovoltaic enterprises.

What is even more gratifying is that at the meeting between the heads of state of China and the United States held at the end of June this year, the two sides agreed to resume economic and trade consultations on the basis of equality and mutual respect, and at the same time, the US side no longer imposed new tariffs on Chinese exports. The important consensus reached between China and the United States this time has swept away the haze that has been deposited over the economic and trade relations between the two sides for many days. This is also a great benefit to the photovoltaic industry, which is suffering from the "double negative".

The haze gradually dissipated and photovoltaic was waiting for the opportunity.

For now, despite the easing of trade disputes between China and the United States, it is believed that China and the United States will be able to reach a win-win agreement on equality and mutual benefit in the near future, but it may not be time to cheer for China's photovoltaic industry.

It is undeniable that after more than 20 years of development and efforts, China's photovoltaic industry has made remarkable achievements, from a minority industry that depends on foreign technology and market, has developed into a "China business card" leading the world from technology to shipment.

However, at present, the development of China's photovoltaic industry is still facing many problems and challenges. As far as the domestic market is concerned, the problems such as light power restriction, subsidy arrears, financing difficulties, lack of market norms and standards are still very prominent. In addition, the new photovoltaic policy comes out of Taiwan, subsidy retreat accelerated, it is bound to force enterprises to improve the technical level to reduce production costs, as soon as possible to achieve affordable access to the Internet.

In fact, under the influence of the "531 New deal" last year, China's photovoltaic industry has also suffered a major blow. In 2018, the number of new photovoltaic installations in China decreased by 8.8GW, or 16.58%, compared with the same period last year. With the retreat of photovoltaic subsidies and the acceleration of affordable Internet access, the latest data also show that China added 5.2GW photovoltaic capacity in the first quarter of this year, down 46.11 percent from the same period last year. It can be seen that the current development situation of the photovoltaic industry is not very optimistic. The official release of the list of the first batch of photovoltaic parity projects this year also marks that the photovoltaic industry is about to enter a new era.

Then, in the face of the gradual withdrawal of photovoltaic subsidy policy, the accelerated pace of affordable access to the Internet, and the blowing of the horn of the new era of photovoltaic, China's photovoltaic enterprises urgently need to change their development ideas, vigorously improve product quality and technical level, and constantly reduce production costs. Enhance their own competitiveness, promote high-quality and efficient development, and promote the arrival of the era of affordable Internet access in an all-round way.

Key Words:  Photovoltaic  trade  China