PV "double-reverse" trend has gone to China to make four major reflections

China's photovoltaic (PV) industry is facing challenges from both the U.S. and the EU. Recently, the European Commission launched countervailing investigations against Chinese PV companies exporting wafers, batteries, and modules. On the same day, the U.S. International Trade Commission (ITC) ruled to impose punitive tariffs on Chinese crystalline silicon photovoltaic cells and components. This "double whammy" has left the U.S. market largely inaccessible to most Chinese firms, and similar outcomes seem inevitable in the EU. Chinese PV companies now need to reflect on their strategies and avoid repeating past mistakes. **Reflection 1: Lack of Confidence Leads to Weak Countermeasures.** When faced with U.S. and EU trade actions, the Chinese government initially responded with condemnation but lacked strong measures. The recent announcement of anti-dumping and countervailing investigations on European polysilicon imports, along with protests to the WTO, were reactive steps. This hesitancy stems from structural issues within the industry. China’s PV sector focuses heavily on manufacturing while leaving the lucrative terminal markets to others. This imbalance weakens our ability to retaliate effectively. Additionally, the reliance on foreign equipment and high polysilicon prices limits our options. Domestic polysilicon producers benefit from tariffs, but this harms downstream businesses. The government and enterprises must find innovative ways to mitigate these impacts. **Reflection 2: Failure to Move Beyond Traditional Operating Models.** Despite being an emerging industry, China's PV sector struggles with overcapacity and homogenization. For instance, the inverter industry has hundreds of manufacturers competing fiercely, leading to plummeting prices and razor-thin margins. While Chinese inverters dominate the domestic market due to low pricing, they struggle internationally due to poor quality and lack of innovation. Core components are often imported, and products are poorly differentiated. This mirrors broader issues across the PV supply chain, where companies prioritize scale over innovation. Without addressing these imbalances, China risks remaining a global assembly hub rather than a leader in technology. **Reflection 3: Flawed Political Systems Hinder Industry Growth.** Government initiatives like the "Golden Sun" program and feed-in tariffs have had mixed results. The pre-subsidy model led to mismanagement, as projects were approved without proper oversight. Disputes over grid integration and subsidies further slowed market expansion. A lack of transparency in approvals and subsidies undermines investor confidence. To foster sustainable growth, the government must establish clear rules, streamline approvals, and ensure fair compensation for renewable energy producers. Market competition, not subsidies, should drive progress. **Reflection 4: Absence of National-Level Planning.** China’s PV industry lacks cohesive national guidance, leaving it vulnerable to local governments' ambitions. Many regions chase quick GDP gains without considering long-term sustainability. This has fueled overinvestment and inefficiencies. A unified national strategy is essential to balance capacity expansion with market demand. Such a plan should encourage innovation, prevent overcapacity, and ensure fair competition. By learning from past errors, China can steer the PV sector toward healthier, more sustainable growth. In conclusion, China’s PV industry must address these systemic flaws to thrive globally. Innovation, transparency, and strategic planning are key to overcoming current setbacks and creating a brighter future for renewable energy.

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