In May 2012, ChinaGlobalTrade.com, a program of non-profit organization The Kearny Alliance, released a well-researched and well-documented report titled "China's Solar Industry and the U. S. Anti-Dumping/Anti-Subsidy Trade Case. The purpose of the report is to "present a balanced, fact-based discussion of the trade case; an exploration of how China's solar industry has grown so big so fast; and a thorough analysis of what might be the consequences – many of them likely unintended – of likely outcomes of this trade case" to encourage readers to look at the issue from new angles.
As background to the case, the report presents these facts about the global solar industry:
- On-grid installation of solar photovoltaic (PV) systems grew an average of 45% per year on average between 2003 and 2009, driven mainly by government policies in Germany, Spain, Italy, Japan, and the U.S. “These policies are designed, in one way or another, to subsidize the cost of solar power so that it is competitive with other on-grid electricity sources."
- Global production of solar PV systems rose dramatically in the last decade – from 371 megawatts in 2001 to more than 24 gigawatts in 2010, an increase of 6,376%.
During this time period, China’s growth in solar manufacturing was rapid. "In 2001 China produced 1% of the world’s solar cells and modules. By 2010 it produced nearly half. Today, four of the top 5 solar cell producers are Chinese; three of the five module producers are. Of the top fifteen solar cell manufacturers in 2010, six were Chinese companies. Two were American. Of the fifteen solar module manufacturers in 2010, eight were Chinese. One was American."
Estimates of the cost advantage of Chinese cell and module manufacturers compared to their U.S. counterparts range from about 18% to 30%, but GTM Research analyst, Shyam Mehta, estimates the cost differential to be about 25% to 30% in 2012.
