Chinese President: China Will Not Sacrifice Environment For Short-Term Growth

[NickB79]

3. The irony is, this could be horrible for solar manufacturers there

China’s new leaders may be reluctant to implement stimulus to reverse an unexpected slowdown in first-quarter growth after a 4 trillion yuan ($586 billion at the time) package to support the economy during the global financial crisis led to inflation, a housing bubble and industrial overcapacity. Since taking office in March, Li has pledged to cut government interference in the economy, give market forces more power and boost the role of private companies.

Several major solar panel manufacturers in China have gone bankrupt recently because of......industrial overcapacity! Cutting back government subsidies on renewable industries and boosting the private sector could likely result in rising solar panel costs and slower annual production, as manufacturers can no longer make panels below cost and get reimbursed by the Chinese government.