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April 21, 2009
China Solar Needs Subsidies
All photovoltaic industries in the world depend on government subsidies. China is going down that road as well. Shi Dinghuan has stated that what China's solar power manufacturing industry needs is a more active set of government policies to support and subsidize the adoption of solar power domestically, along the lines of the industrial policies that have created significant growth in the Chinese wind industry (see recent article). Because the use of solar power in China has been insignificant, the potential for growth is outstanding.This may make some sense in areas of China that are far from power lines. It makes no sense where access to the Chinese grid is available. This is all part of the Chinese stimulus plan. Asia's financial markets greeted China's massive stimulus plan warmly, but with caveats that underscored concern that economic stability in China won't by itself reverse global trends.And that is not all the Chinese stimulus plan will do. It is also intended to stimulate the Chinese manufacturers of consumer electronics. ...a consumer stimulus plan implemented by the Chinese government designed to drive consumption of electronics and appliances by citizens living outside the major urban regions," he said. "This has prompted a supply chain scramble in select markets, namely LCD TV, netbooks, consumer based notebooks and low-end handsets."It will be interesting to see if the effort has its intended results. One possibility is increased unrest caused by Chinese citizens who will find it easier to organize protests against the Chinese government. Bankruptcies, unemployment and social unrest are spreading more widely in China than officially reported, according to independent research that paints an ominous picture for the world economy.Can we expect to hear (through clandestine channels) of tea parties (or equivalent) in China? Time will tell and hopefully the Sunday Times will report it. Cross Posted at Power and Control posted by Simon on 04.21.09 at 01:08 AM |
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