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EU's double-reverse termination of three major impacts on China's PV
2018-09-06


In the second half of 2018, China's photovoltaic industry has been in hot water. Yesterday, the EU on China's photovoltaic industry as long as five years of "double negative" finally ended, China and the EU formally resumed normal photovoltaic trade. This heavy news is a timely rain for China's photovoltaic industry.

Looking back on the development of China's photovoltaic industry, it is almost a bloody and tearful history that has been constantly regulated by the "double evils" and trade. In a short period of more than ten years, it has been regulated by the European Union, the United States, India and other international mainstream photovoltaic markets. However, with the support of the huge domestic market, China's photovoltaic industry is growing under adverse circumstances, in the manufacturing and application of the world's top, has become one of the few domestic industries in the international market with greater advantages.

However, the rapid growth of the domestic market in 2018 ushered in a turning point, the slow domestic market demand makes enterprises have to pin their hopes on the development of overseas markets again. But the United States is coming aggressively, India is taking advantage of the fire looting, several major global markets for China's photovoltaic industry is not so friendly. China's photovoltaic industry has thus fallen into the predicament of "internal and external troubles", in this case, once the world's largest photovoltaic market opened to China again, closed for five years the door of trade slowly opened, domestic photovoltaic people are cheering.

However, unlike five years ago, China's photovoltaic industry today has reached the top of the world, while the European Union is in the "double negative" in the self-proclaimed, photovoltaic industry is declining year by year. Under such circumstances, what impact will the opening of EU market have on China's photovoltaic market?


 

First, boost market confidence and ease overcapacity.

When the "531" New Deal was issued, the domestic capital market reacted obviously, and the market value of photovoltaic enterprises experienced a sharp drop. Now the good news from the EU market has also produced immediate results. Data show that from September 3 to September 4, the solar energy sector rose against the market, the solar concept plate rose 0.78%, the number of companies rose 84, accounting for 76% of the 110 listed companies in the solar concept plate.

The change of capital market has always been the vane of industrial development, because the industry is in a special "cold winter period", the opening of the EU market is particularly important. The more substantial impact is that the opening of the European Union market will, to a certain extent, alleviate the crisis of overcapacity in the domestic photovoltaic industry.

Due to the high expectations of the domestic market, the photovoltaic industry has launched a wave of "expansion tide" in the past two years. A large part of the expansion capacity was released in 2018. While the capacity expansion, domestic market demand has ushered in a "cold winter", so the crisis of overcapacity once again becomes an urgent problem to be solved.

The opening of the EU market means that China's photovoltaic products can enjoy zero tariff treatment in the EU market as long as they are not lower than the "minimum price standard". In this way, the production capacity that can not be consumed at home can be exported to the EU through reasonable sales channels, and make good profits.


 

Two, accelerate the industry integration, the oligarchic effect is still prominent.

The acceleration of industry integration has become the main theme of PV industry in 2018. Looking back on recent events in the photovoltaic industry, it seems that whatever happens, SMEs are always hurt.

First of all, those affected by the "531" new deal are the small and medium-sized enterprises. Because relatively speaking, the limited domestic market demand, the elimination of small and medium-sized enterprises products, and those large enterprises, large brands of products may reduce the volume of shipments, but the market share may rise; on the other hand, those in the overseas market blossom more than the giant enterprises will not be caused by the shrinkage of the domestic market. The business of overseas market can ensure the normal operation of these enterprises. In this regard, SMEs that rely heavily on domestic markets and are unable to open up overseas markets will face difficulties.


 

Three, or reverse the International Trade Dilemma of China's photovoltaic industry

The rise of China's PV industry is not easy under the control of "double opposition" and various trade controls for many years. Once upon a time, the United States, the European Union, India and other large global markets have set up high trade barriers to China's photovoltaic industry, making China's photovoltaic industry is facing the dilemma of "all enemies".

Although China's photovoltaic enterprises have actively exploited emerging markets, the largest markets have been trying to curb the development of China's photovoltaic industry through unfair trade measures. Trade measures such as "double-sided" can not create a win-win situation. The photovoltaic industry of the EU, which has long been carrying out "double-sided" against China, has not developed, but has been weakening in the "double-sided" situation. Five years ago, Europe's big photovoltaic giants still retained enormous technological and capacity advantages, but five years later, most of the European giants that once made Chinese photovoltaic companies look up to have withered.

According to reports, the main reason why the European Commission terminated the "double negative" is to consider the interests of European Union solar panel manufacturers, users and importers. They believe that the lifting of the restraining order is the most favorable decision for the whole EU.

"Double opposition" and other trade measures harm people and harm themselves. However, some countries can not see this point clearly. If the United States still closed the door to China's photovoltaic industry, and India is taking advantage of China's photovoltaic industry market change period to take advantage of. This is a short-sighted performance for the global PV market development.

The opening of the European Union market is expected to play an exemplary role in the global photovoltaic market. It is believed that with the in-depth cooperation and exchanges between China and the European Union market, both sides will make concerted progress so as to achieve win-win development. These mutually beneficial and successful developments will officially make China's photovoltaic industry a shining business card, remove the bias of other markets on China's photovoltaic industry, and reverse the international trade dilemma faced by China's photovoltaic industry.

Source: OFweek Solar Photovoltaic Network


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