Trade Friction Influence On The Development Of China PV Industry

China’s photovoltaic industry has experienced from1950s till now three phasesof development, i.e. the phase of photovoltaic technical research, the phase ofphotovoltaic battery manufacturing and the phase of rapid photovoltaic industrialgrowth chronologically. Overall, China’s photovoltaic technological level andapplication expansion still lag behind those of western countries. Recently the US andthe EU have launched anti-dumping and anti-subsidy investigations into China’sphotovoltaic industry. Analysis based on IPE Studies has revealed that the domesticand international economic and political concerns of the US and the EU jointlycontributed to the intensification of trade frictions. The anti-dumping and anti-subsidyinvestigations undertaken by the US and the EU have also rendered profoundimplications for the development of China’s photovoltaic industry both economicallyand politically.Nevertheless, trade frictions have also vividly revealed the existing five-facetedproblems embedded in the development of China’s photovoltaic industry, includingthe weak corporate debt-paying, operating and profit-earning capacities, the laggingindustrial developing links and the integration-awaiting industrial value chain, thebackward domestic application market and its consequent abnormal dependence onthe external markets, the inadequate technological R&D and innovation and thelacking of advanced industrial technicians, and the insufficient support ofgovernmental policies and the deficiency of related standards and complementarymeasures.In connection with the negative impacts caused by trade frictions and theabove-mentioned problems, the author proposes countermeasures from three anglesfor China’s photovoltaic industry to avert externally-originating trade frictions.First, at the corporate level, China’s photovoltaic companies should engage inproactive representations with the Chinese government, adopt the strategy ofinvesting and opening factories overseas and tapping other foreign markets, andenhancing technological introduction, encouraging technical innovation and lowering the cost of production. Second, at the industrial association level, it should strengthenthe cultivation of photovoltaic talents and promote photovoltaic technologicalexchanges, upgrade the construction of the photovoltaic industry service system, andpurify the photovoltaic industrial environment. Third, at the governmental level, itshould establish an effective international trade coordination mechanism to strive toovercome trade frictions, strongly develop the domestic photovoltaic applicationmarket, vigorously facilitate the integration of the photovoltaic industrial chain tobring into reality the transition of China’s photovoltaic industry, improve pertinentpolicies and complementary measures, set up a united photovoltaic managementorganization to improve relevant authentication and monitoring mechanisms, andfoster the awareness of the utilization of clean energy among the general public.