China’s New Economic Target and Photovoltaic Firms' Development

December 31, 2009

The 18th National Congress of the Communist Party of China has kicked off in the capital Beijing. President Hu, in his keynote report, said that China should double its 2010 GDP and per capita income for both urban and rural residents by 2020. In an interview with CCTV Biz Asia, Prof. Zhu Ning, Deputy Director of SAIF, analyzed China's new target for economic growth. Moreover, Chinese solar producers were imposed anti-dumping tariffs and subsidy-fighting duties by the U.S government. Prof. Zhu pointed out the U.S government intervention might have a negative impact on the development of photovoltaic industry.
China Aims to Double 2010 GDP by 2020
China has been enjoying over 8% of any growth in the past 3 decades, achieving on average at 7% economic growth per year in the coming decade doesn't seem to be hard to achieve, and also it is important to keep in mind that what will the economic growth has been sustaining itself or it is important that we have to emphasize on the per capita income not just the total income itself. Chinese citizens will definitely benefit from the target specially the focus on the per capita income increase. There are pretty a few things that Chinese residents or citizens will really concern about, one of them is, after a few years of really high inflation level, people really concern with price level or inflation, they want to make sure that they have enough income and also they have increased in their real income and purchasing power. Related to the price level, people really concern with the housing prices and real estate cause policy has taken a little effect on the high housing price especially if you put that in light of Chinese income level. To make things more concrete or to make things interesting, Chinese are getting more and more interesting and concerned about the wealth distribution. To increase this satisfaction among Chinese citizens, how to adjust Chinese taxation and fiscal policy to make competition more reasonable and fair is a very big problem on many Chinese residents' mind.
US Final Decision's Effect on China PV Firms
Unfortunately, it will have conceivable impact on the Chinese solar industry, the unfortunate reality is the whole industry is largely dependent upon government subsidy to different level to different countries, so without the government support from countries, the industry has a lot of effect negatively on its potential and growth prospect.