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Strengthen Cooperation between China and Germany to Realize Mutual Benefit and Win-Win in PV Market


Currently Germany and Europe are still on the drastic debate about the decline of the photovoltaic industry but the guilty party has been presumed: Chinese photovoltaic products manufacturer. EU is considering the introduction of imposing penalty duty to Chinese manufacturers under the framework of anti-dumping case. Chinese solar product manufacturers are accused by taking the government’s subsidies to destroy all other competitors with cheaper price.

In fact, the glut of photovoltaic panels led to fierce competition. Currently the world has about 60 million kilowatts of photovoltaic panel production capacity, but sales are only 30 million kilowatts. Competition happens naturally.

All companies are struggling to survive while many companies have fled. The most famous event is the German Bosch and Siemens have quit this field. However, a large number of American and Chinese manufacturers are suffering torment. In this industry, all companies are not making any money, but only record deficit on the books. This situation will always continue until the end of the market reshuffle. Of course, there is another possibility that is to open up new markets for increasing sales.

Who are the victims of this tragic competition? It is the whole Industry or a part of the industry, or some product manufacturers. Sweeping accusations could not correctly solve the problem.
The total price of photovoltaic panels takes up around 60% of the whole price of photovoltaic system. But it should not be overlooked that this product also contains products in other processes. Crystalline silicon produced by German Wacker accounted for about 20% of the world market. But also in other areas of photovoltaic, German companies are very competitive and make a lot of achievement.

German inverter manufacturer SMA occupies about 30% of world market share. German PV panel production equipment accounted for about 50% of the global share. Half of photovoltaic products in China use Germany's equipment. If the German company lost the international market, it is equivalent to losing 80% of the market. As we all know, in all fields of the German photovoltaic industry, the export share is around 55% - 60%.

In this case, German should clearly consider what kind of strategies is the most meaningful? Where is the future market of Photovoltaic systems? In Germany or elsewhere in the world? A famous Chinese PV entrepreneur issued the following view: "the best solution towards EU anti-dumping investigations actually is the Chinese government’s measures which promote the development of China's domestic PV market, and expand the PV market share."

China is moving forward to the world's largest PV market. Please allow to raise a question here: is the punitive tariff on Chinese products meaningful, who would be the loser and who would be the winner. Such punitive tariffs once begin may trigger a trade war. How much the negative impact on the German equipment and products vendors? Several German PV manufacturers accused Chinese government’s subsidies as the reason for the glut of solar products. But the correct question should be: has which country not provided subsidies for its solar energy companies?

Chinese PV companies and German companies are suffering the same economic difficulty. There are competitions between China companies and German companies, but cooperation is more. The strengthened cooperation between the enterprises from both countries is possible to achieve mutual benefit and win-win in the growing Chinese and global PV market.