Ray of Sunshine? China Can't make up its mind what it wants to do about Solar Panels

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Beijing recently told the South China Morning Post that its solar industry is headed toward a cliff, which, because China controls the business and that fact that solar promises to be one of the three main legs of global green energy, is potentially a big problem.

The newspaper reports: “China is warning its oversaturated photovoltaic sector to avoid blindly expanding capacity — including in producing solar panels — with newly issued guidance that comes as industrial overcapacity has been self-defeating domestically while triggering backlash in the global market and stoking geopolitical tensions.”

The White House issued an order earlier this year stating that tariffs on Chinese solar cells would be between 20% and 25% this year. “The tariff increase will protect against China’s policy-driven overcapacity that depresses prices and inhibits the development of solar capacity outside of China,” read a press release. Under the upcoming Trump administration, those rates could double, with the president-elect wanting Chinese companies to invest in U.S. solar manufacturing projects.

Ministry’s warning
“After months of soliciting public opinions,” the Morning Post added, “the Ministry of Industry and Information Technology (MIIT) released revised versions of two major industry-guiding documents for the photovoltaic sector on Wednesday, urging manufacturers — but not ordering them — to reduce projects that are merely meant to increase capacity.”

It may not be an order, but it should be viewed as one with Trump in the White House.