China Continues to Show Vision and Commitment. As market softens for PV they are stabilizing their industry by committing to 35 GW at a rate of at least 10 GW / yr. Some will say that this is bad practice. I would argue that they wisely see solar as a strategic asset and are treating it in the same way that we treat aerospace companies, designing policy to keep the companies healthy. It may not optimize efficiency of the world market but it assures their dominance in an industry that will continue to grow. They are also encouraging mergers to reduce the cannibalizing of the market. I think the writing is on the wall that they are seeking to control pricing. My guess is that the next step is for the Chinese industry group to work together to fix prices to their advantage much as Intel does with Advanced Micro Devices in the microprocessor market. This will enable them to optimize the market to benefit their companies the most and minimize benefits to others.
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