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China Will Taking Over’s Technology Solar Panel of U.S. Market Rein0 comments

By Frans de Rozari
Posted on 26 Aug 2009 at 3:26am

suntech-solar-panelThe biggest potential of business technology on hand in China, the industrial fast grow up in all aspect almost business market. Chinese companies have already played a leading role in pushing down the price of all worldwide market, that also for technology development came out from China then go around to whole world, China has stepped on the gas in an effort to become the dominant player in green energy technology especially in solar panel as power of energy sources in the U.S.A.

Enough strange heard it — even in the United States it self, the nation solar panel companies go down. Still fresh in your mind, remember President Obama promises to the nation in 7 months ago? Wants to make the United States “the world’s leading exporter of renewable energy,” what this sign that China also lodge gas to dominate worldwide economy — Not misunderstand, at least they help develop technology of renewable energy and love green earth, but in the fact Chinese companies have already played a leading role in pushing down the price of solar panels by almost half over the last year and Obama have determine choice.

China’s biggest solar panel manufacturer, chief executive and founder Suntech Power Holdings, Dr. Shi Zhengrong said, they build market share, is selling solar panels on the American market for less than the cost of the materials, assembly and shipping, he said in a statement. They hope can make thoroughly where has full support from government and Obama administration is determined to help the American industry, try give $2.3 billion in tax credits to clean energy equipment manufacturers.

The Chinese are preparing to build plants to assemble their products in the United States to bypass protectionist legislation and the solar panel companies are encouraging their United States executives to join industry trade groups to tamp down anti-Chinese sentiment before it takes starting place.

Other the think from Europe or the United States companies, solar panel industry felting will get heavy competitor, they may have fragile prospects when competing with Chinese companies that have cheap loans, electricity and labor, paying recent college graduates in engineering $7,000 a year.

That a fact, Europe and the United States having come to solar panel consumers not producers of solar panel products. Thomas M. Zarrella, the chief executive of GT Solar International, a company in Merrimack, N.H., that sells specialized factory equipment to solar panel makers around the world, said it. China government gives full support to solar panel companies, in rivalry that well between province at China offered solar panel to Europe and United States, the support including free land, and cash for research and development. State-owned banks are flooding the industry with loans at considerably lower interest rates then, ascertain the solar panel will available in Europe and United States market.

United States and Europe solar panel industrial, difficulty to gets loan with lower interest rates, beside hope other easy of mention like employee problem and cost companies operational etc, at the same time as the world economic condition still not yet stable.

Suntech, base camp on Wuxi one of city in China, Jiangsu province is on track this year to pass Q-Cells of Germany, to become the world’s second-largest supplier of photovoltaic cells, which would put it behind only First Solar in Tempe, Ariz. Suntech gets the United States governments support to assist clean energy industries, including with factory construction incentives and even more, Chinese governments and even the Chinese military, all seeking to capitalize on an industry deemed crucial by China’s top leadership.

Solar energy remains far extra expensive to generate than energy from coal, oil, natural gas or even wind speed. However, in calculation to heavy Chinese investment and low Chinese costs, the global economic downturn and a decline in European subsidies to buy panels have lowered prices.

The American economic incentive sketch requires any project receiving cash to use steel and other construction materials, including solar panels, from countries that have signed the World Trade Organization’s agreement on free trade in government procurement. China has not.

China’s energy consumption is growing faster than any other country’s, the report says Beijing’s aim is to generate 20,000 megawatts of solar energy by 2020, that mean, less than half the capacity of coal-fired power plants that are built in China each year, Chinese government have commitment to solar energy is unlikely to make a difference soon to global warming.

Suntech president for global sales and marketing, Steven Chan said, the company plans to announce in the next month or two that it will build a solar panel assembly plant in the United States, “It’ll be to facilitate sales - ‘buy American’ and things like that,” Mr. Chan said, adding that the factory would have 75 to 150 workers and be located in Phoenix, or somewhere in Texas. But Dr. Shi said 90 percent of the workers at the $30 million factory will be blue-collar laborers, welding together panels from solar wafers made in China.

The response quick came flows from various country, a part of solar panel companies felt will compete heavy, also from Yingli Solar, another large Chinese manufacturer, said that it also had a “preliminary plan” to assemble panels in the United States, while from European rivals have the same think, meanwhile, are struggling. Q-Cells of Germany announced last week that it would lay off 500 of its 2,600 employees because of declining sales. It and two other German companies, Conergy and SolarWorld, are particularly indignant that German subsidies were the main source of demand for solar panels until recently.

Markus Wieser, Q-Cells spokesman said, “Politicians might ask whether this is still the right way to do this, German taxpayers paying for Asian products,” but organizing resistance to Chinese exports could be difficult, particularly as Chinese discounting makes green energy more affordable.

Suntech acknowledging more that it sells below the marginal cost of producing each additional solar panel has cost after administrative and development costs using a different technology from many solar panel manufacturers, is actually profitable. However, Chinese government is requiring that 80 percent of the equipment for China’s first municipal power plant to use solar energy, to be built in Dunhuang in northwestern China next year and it’s be have to using made in China.

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