The Development Path Of China's Photovoltaic Industry Embedded In Global Value China

As a basis resource for the development of human society, energy issues have got the international attention. Especially since the industrial revolution, the status of energy has been considered more and more important in the development of the process of society. While enjoying the socio-economic development and the enhancing living standards brought about by energy, people more and more clearly realized that energy misuse has bring out many social and environmental problems. In order to solve the energy crisis and environmental pressure caused by conventional energies, the world began to search for alternative energy sources. Sine 2000, American, Japan and some European countries have introduced policies and relevant laws to subsidize the development of renewable energy industry. In final analysis, the energies of earth come from solar radiation; if we used solar energy as the main source of energies, not only the energy crisis, but the pollution caused by fossil fuel burning could be solved together.PV industry comprises all the research, develop, produce, applying enterprises, whose businesses including extraction of raw material, materials processing, solar cell production, cells assembly, photovoltaic power generation system designing, installing and maintenance.Both researching the status of photovoltaic industry, the development path, changes in market conditions and development prospects and analyzing the life cycle of current photovoltaic industry, the distribution of global value and the transfer of photovoltaic industry can guide the photovoltaic industry to develop healthier. This paper is divided into three parts:Firstly, in order to facilitate the discussion on PV industry in this paper I introduced the fundamental theories at the begging. There are two major theory supporting the discussion following:Basing on the value chain theory, whose important part, called fragmentation theory of global value chain, based on the industry-transferring of international trade theory, the global value chain theory can explain part of the problems in the photovoltaic industry.After theoretical review, this paper analyzes the whole course of development of photovoltaic industry and market environment. The current market supply situation is:the rapid growth of photovoltaic cell production, photovoltaic cell production in the state assembly to transfer is still the mainstream crystalline silicon cells, power generation costs continue to decline, but still no cost advantage; market demand:PV Battery demand continues to grow, the main PV market in the EU internal transfer, the largest proportion of the grid to support the policy to change.Secondly, studying the fragmentation of the photovoltaic industry was based on the theory of global value chain, including the analysis of the characteristics of every part of the value chain and their value-added, the master of the core parts, the principle of fragmentation and the influence to the sending and receiving countries' PV industries, and so on. The paper also described the distribution of current global PV industry global value chain. Production chain materials value chain, concentrated in a few developed countries, the middle of the production processes mainly in developing countries, the end of the installation and maintenance of links focused on the PV market countries, this value chain of the global division of labor is called the global value chain fragmentation. The material production part is holding on the handset of some developed countries, and the cell production part is developed rapidly in developing countries, while the installation and maintenance part is concentrated in the main market countries. After the introduction of the division, the paper analyzed the two main types of integrate behaviors, which are populated in current years, in photovoltaic industry-"outsourcing low value-added links" and "occupy the entire value chain" in two ways.Life cycle in the industry based on the theory of the life cycle of the PV industry and Analysis of the factors that affect the industry life cycle and impact of industrial transfer factors and transfer of the life cycle and industrial relations. Analysis embedded in the global industrial value chain of the advantages of the industry life cycle theory can not explain the transfer of industries, presented its own interpretation.According to the industrial life cycle theory, the paper studied the life cycle of PVC industry and the industrial transfer conditions; analyzed the factors influence the industrial life cycle and the relation between the life cycle and transferring; remarked the advantage of our PV industry in the process of embedding into the global value chain; and finally proposed the explanation for the obscure phenomenon of PV industrial transferring.The growth model studying of China's PV industry along the value chain is at the end of the paper. China's PV industrial growth model along the value chain was studied at the end of this paper. On the one hand, China's PV industry environment has changed and some advantages gotten at the beginning of the embedding process have disappeared; on the other hand, the accumulations of capital and technology let China's PV industry has had the capability of occupying the high value-added parts of the global value chain. Then the paper analyzed the development path China's PV industry facing after the transfer, contrasting the two cardinal development patterns' merits and flaws. Based on the analysis the problems and the factors which confined the development of China's PV industry, the paper proposed an explanation for one of the questions bothered the PV industrial circle for a long time in a new prospective.