China is focused on dominating the world market for solar energy, despite no natural advantage

Support will be provided to major enterprises to grow stronger so that by 2015, leading polysilicon enterprises will reach 50,000 metric tons per year, and major enterprises will reach 10,000 metric tons per year; leading solar cell enterprises will reach the 5GW level, and major enterprises will reach the 1GW level. By 2015, in China there will be one PV enterprise with annual sales revenue exceeding RMB 100 billion, 3-5 PV enterprises with annual sales revenue exceeding RMB 50 billion, and 3-4 enterprises specializing in PV equipment manufacturing with annual sales revenue exceeding RMB 1 billion Source: People’s Republic of China 12th Five-Year Plan for the Solar Photovoltaic Industry 2011

China has created unsustainable overcapacity and overproduction

Chinese production has grown unsustainably, and well beyond global demand.

According to Matthias Fawer, Director of Asset Management Sustainability Research at Bank Sarasin, Chinese and Taiwanese solar companies increased production volume by 120 percent over the last four years. In contrast German and Japanese companies grew production by only around 40 percent Source 24 April 2012


China has amassed production capacity that is more than 20 times greater than domestic demand, resulting in more than 90% of Chinese solar production being exported overseas.


Capacity expansions taken up by the solar firms in recent years have caused supply to significantly exceed demand. Hence, despite a continued increase in demand, the industry will likely continue to suffer due to oversupply Source Digitimes PV 2012 - Expectations for the global solar market.