China's Golden Sun Demonstration projects achieved a total installation capacity of 4.54GW in 2012, up 548.57% from 2011, according to media reports from China. China's government has been aggressively promoting domestic demand as the country's solar industry faces punitive tariffs in the US and possibly similar measures in the EU.
The reports stated the projects' second phase of installation in the second half of 2012 reached 2.83GW and these projects need to be completed before the end of June 2013. China's government has a budget of around CNY10 billion (US$1.6 billion) per year for the Golden Sun Demonstration projects, said the reports.
The EU is expected to announce a preliminary result for its anti-dumping and anti-subsidy investigation against China-based solar firms in 2013, and hence China-based solar firms have been diversifying market and business strategies to cope with any possible changes. China-based solar firms fear that if the EU levies heavy tariffs, South Korea-based solar peers will seize the opportunity and become a strong opponent. Therefore, China-based firms have been eager to cooperate with Taiwan-based firms to strengthen the competitive advantage of the Greater China solar industry.
China-based solar firms believe South Korea-based peers will use brands to enter the Europe market if the EU investigation effectively blocks China-made products.
Solar makers noted that the oversupply problem has affected South Korea-based solar firms as well. Many South Korea-based solar firms also face market exit, production suspension, capacity and investment reduction. Nevertheless, solar makers added, South Korea-based firms continue to develop end market brands.
