One of the largest union organizations in the United States, the US Steel Workers Union (USW), recently sued the Chinese clean energy industry to its own domestic trade arbitration agency. In this regard, Suntech chairman and CEO Shi Zhengrong on September 17 in Wuxi, Jiangsu told the media that the situation is very grim, if not prevented in a timely manner, the United States will impose tax penalties on China's solar panels, a huge damage to China.
At present, the demand for photovoltaic cells in the United States amounts to 1,200 megawatts per year, half of which come from China. Shi Zhengrong said that the Chinese government should take it seriously and must let the US understand that China's photovoltaic solar energy companies have not received special care from the government and everything is a market behavior.
Shi Zhengrong believes that since the photovoltaic industry is a global industry, some governments have narrow commercial barriers to manufacturing. Actually, photovoltaic solar upstream raw materials mainly come from Europe and the United States—39% of polysilicon is produced in the United States, 18% in Europe, and only 18% in China. .
“The United States is now ready to set up trade barriers. It did not think that the development of China’s photovoltaic industry will allow the world’s people to use affordable green power in advance. Chinese companies and governments should publish the truth to the world and not distort others.†Shi Zhengrong Say.
Shi Zhengrong bluntly stated that photovoltaic power plant bidding cannot adopt the lowest bid winning practice. In mid-September of this year, the nation’s second batch of large-scale photovoltaic power plant concession project announced the results of the bid, the bid price is all lower than 1 yuan/kWh, the highest price is 0.9907 yuan/kWh, and the lowest price is only 0.7288 yuan/kWh.
Suntech Power participated in the bidding, but the quotation was not low and therefore it failed to win the bid. In this regard, Shi Zhengrong explained that Suntech Power adopts a “reasonable strategyâ€â€”it must have a 6%-8% return rate. If it cannot, it is difficult to make a decision to vote.
Shi Zhengrong appealed to participants in the photovoltaic power generation industry to “maintain industry prices†and not to fight price wars. He compared the “Prisoner’s Dilemma†by stating that everyone is fighting for price reductions for their own benefit, and they often end up with a double-lost situation.
"If the component prices do not drop so fast last year, it will not prompt the German government to determine that the wind power industry is already making huge profits, and it is determined to lower the price of wind power on the Internet. In fact, companies cut prices and everyone has done a very hard job," Shi Zhengrong said.
For the low-cost entry of state-owned enterprises, Shi Zhengrong believes that the primary responsibility of the government is to formulate a policy of “government setting up and companies to performâ€, but he also understands that state-owned enterprises, as a special type of enterprise, are also looking for new growth points.
Speaking of the industry's prospects, Shi Zhengrong predicted that industrial costs will continue to fall. He also pointed out that the photovoltaic solar energy industry has entered the integration phase. In August of this year, South Korea's Hanwha Group spent 430 billion won (approximately 2.45 billion yuan) to acquire Solarfun Power Holdings, a Chinese solar PV company listed on the Nasdaq. Shi Zhengrong said that with more and more Fortune 500 companies entering the photovoltaic power generation industry, the acquisition is expected to be frequent and the integration trend will become more apparent.
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