The United States “re-industrialization” and China’s strategic emerging industries collision of interests. Photovoltaic industry “double reverse” Obama is just the first step in chess.
Mo Zhang Nan, the State Information Center, Research Associate Department of the world economy, economics, post-doctoral, International Association for Chinese Management Research (IACMR) Member
Only through new energy, new materials, driving a new round of industrial cycle, return to the U.S. to attract global capital, is the direction of the U.S. recycling industry.
Continuation of the financial crisis, trade protectionism in the United States since the tendency of the U.S. Department of Commerce will be directed at China’s new energy, the photovoltaic industry in China started the “double reverse” survey, which marks a new field of energy between China and the U.S. The fierce battle has begun.
Recently, a series of three U.S. solar companies closed down, alerted the United States political and business circles. American PV companies in China PV enterprise is defeated, it will make clean energy technologies has been to revive the U.S. economy as the key to competitiveness, and through investment tax credits, loan guarantees, export subsidies and a series of measures to provide for the photovoltaic cell industry support of Obama really very upset, you know, Obama introduced the new energy industry, but the focus of a new economic strategy.
The 2008 financial crisis almost destroyed the U.S. model of development for decades to overdraft, credit expansion and real estate boom as the fulcrum of U.S. economic growth unsustainable. Crisis of the U.S. economy go from here? This is the Obama administration must answer the problem. Over-reliance on the financial industry, real estate, represented by the virtual economy, over-reliance on consumer debt, not only seriously undermine the competitiveness of the manufacturing sector, but also the Chao hair crisis. The United States needs to change the past, “debt-driven” growth model, a new “post-crisis era of economic growth mode”, that is export-driven growth and manufacturing growth.
To this end Obama proposed a “plan to double exports”, U.S. exports will average expected growth rate of 15%, however, seemed far-fetched, because since the 1990s, the U.S. has been most low-end manufacturing transferred out from the country, and its relatively high cost of high-end manufacturing, Europe, Japan and South Korea are the United States a strong competitor. Labor costs and labor productivity from the comparative advantage perspective, as opposed to many emerging market countries, the U.S. manufacturing labor costs, etc. do not have the advantage. Therefore, the U.S. know only through the new energy, new materials, new technologies bring a new round of industrial cycle, return to the U.S. to attract global capital, is the direction of the U.S. recycling industry.
By comparison, China, the same as the new energy industry structure of China’s overall economic transformation and upgrading of the engine and the key. Financial crisis in emerging industries, driven revitalization plan, including the PV industry, including the emergence of new energy industries explosive growth. China’s current products in the renewable energy market more and more to a dominant position, whether it is U.S. companies, or Japanese, European companies have almost lost the local market share, the share of manufacturers in China to gradually improve in 2010, PV production in China reached 16GM ~ 17GM, occupying half of the world. But it is undeniable that, relatively speaking, China’s solar photovoltaic industry is also focused on midstream and downstream industry chain, the competition situation is becoming increasingly fierce. Especially in the more downstream (component production, solar energy applications) more competitive, mainly due to lower production investment, short construction period, low technical and financial barriers, the nearest market, thus resulting in the PV industry in China excess capacity, are more vulnerable to external shocks.
Now, the market demand for new energy sources has become saturated, but countries have limited resources to gain more market share, natural inevitable to come face to face. The United States has determined to implement the new energy industry as its “re-industrialization” and reshape an important strategic competitive advantage the United States and China must speed up the upgrading of industrial technology and brand to regain and develop the broader market.
China should make preparations to fight a protracted war for the PV industry, “dual” is just the beginning of the tide of trade protectionism in the United States, China will be waiting for more complex and intense market game.
Why Obama take difficult to China’s PV industry?
Posted by admin in News
The United States “re-industrialization” and China’s strategic emerging industries collision of interests. Photovoltaic industry “double reverse” Obama is just the first step in chess.
Mo Zhang Nan, the State Information Center, Research Associate Department of the world economy, economics, post-doctoral, International Association for Chinese Management Research (IACMR) Member
Only through new energy, new materials, driving a new round of industrial cycle, return to the U.S. to attract global capital, is the direction of the U.S. recycling industry.
Continuation of the financial crisis, trade protectionism in the United States since the tendency of the U.S. Department of Commerce will be directed at China’s new energy, the photovoltaic industry in China started the “double reverse” survey, which marks a new field of energy between China and the U.S. The fierce battle has begun.
Recently, a series of three U.S. solar companies closed down, alerted the United States political and business circles. American PV companies in China PV enterprise is defeated, it will make clean energy technologies has been to revive the U.S. economy as the key to competitiveness, and through investment tax credits, loan guarantees, export subsidies and a series of measures to provide for the photovoltaic cell industry support of Obama really very upset, you know, Obama introduced the new energy industry, but the focus of a new economic strategy.
The 2008 financial crisis almost destroyed the U.S. model of development for decades to overdraft, credit expansion and real estate boom as the fulcrum of U.S. economic growth unsustainable. Crisis of the U.S. economy go from here? This is the Obama administration must answer the problem. Over-reliance on the financial industry, real estate, represented by the virtual economy, over-reliance on consumer debt, not only seriously undermine the competitiveness of the manufacturing sector, but also the Chao hair crisis. The United States needs to change the past, “debt-driven” growth model, a new “post-crisis era of economic growth mode”, that is export-driven growth and manufacturing growth.
To this end Obama proposed a “plan to double exports”, U.S. exports will average expected growth rate of 15%, however, seemed far-fetched, because since the 1990s, the U.S. has been most low-end manufacturing transferred out from the country, and its relatively high cost of high-end manufacturing, Europe, Japan and South Korea are the United States a strong competitor. Labor costs and labor productivity from the comparative advantage perspective, as opposed to many emerging market countries, the U.S. manufacturing labor costs, etc. do not have the advantage. Therefore, the U.S. know only through the new energy, new materials, new technologies bring a new round of industrial cycle, return to the U.S. to attract global capital, is the direction of the U.S. recycling industry.
By comparison, China, the same as the new energy industry structure of China’s overall economic transformation and upgrading of the engine and the key. Financial crisis in emerging industries, driven revitalization plan, including the PV industry, including the emergence of new energy industries explosive growth. China’s current products in the renewable energy market more and more to a dominant position, whether it is U.S. companies, or Japanese, European companies have almost lost the local market share, the share of manufacturers in China to gradually improve in 2010, PV production in China reached 16GM ~ 17GM, occupying half of the world. But it is undeniable that, relatively speaking, China’s solar photovoltaic industry is also focused on midstream and downstream industry chain, the competition situation is becoming increasingly fierce. Especially in the more downstream (component production, solar energy applications) more competitive, mainly due to lower production investment, short construction period, low technical and financial barriers, the nearest market, thus resulting in the PV industry in China excess capacity, are more vulnerable to external shocks.
Now, the market demand for new energy sources has become saturated, but countries have limited resources to gain more market share, natural inevitable to come face to face. The United States has determined to implement the new energy industry as its “re-industrialization” and reshape an important strategic competitive advantage the United States and China must speed up the upgrading of industrial technology and brand to regain and develop the broader market.
China should make preparations to fight a protracted war for the PV industry, “dual” is just the beginning of the tide of trade protectionism in the United States, China will be waiting for more complex and intense market game.