The EU's big stick hits China's photovoltaic industry and a new wave of wailing
It's going to rain, and my mother is going to run away. On May 8, the European Union confirmed that it would impose punitive tariffs on solar panels imported from China, averaging 47.6%. What's the matter? We have bought so many Airbuses, but we can't get the smiles of Europeans. At most, we can send back two animal heads from the Old Summer Palace.
The disaster is coming. Solar stocks such as Suntech, JinkoSolar, and Astor have fallen, and the Chinese photovoltaic industry has issued a new wave of wailing. But Shi Zhengrong, the former boss of Suntech, did not cry. If my mother wants to run away, then run away. He was given away by his mother when he was a child and ran away with others. Shi started to help adults work to support his family at the age of 6, weaving bamboo thermos shells and selling them for 5 cents each. Shi Zhengrong finally became rich, ranking 350th on the 2006 Forbes Global Rich List with 2.2 billion US dollars, becoming the new richest man in mainland China that year.
Shi Zhengrong's wealth is not because he weaves bamboo thermos shells, but because he found his mother. In 2001, when Shi was 37 years old, he returned to his mother's home as a returned foreigner and founded Suntech Power. At that time, Shi only had 400,000 US dollars in start-up capital. He went to the government and described his future photovoltaic dream. The government was delighted and ordered 8 local state-owned enterprises to raise 6.5 million US dollars to invest in Wuxi Suntech to support Shi's efforts. In 2005, when Suntech Power was preparing for listing, the government made another contribution. The original state-owned shareholders withdrew at a loss to make room for overseas capital such as Goldman Sachs and Actis. Suntech Power was transformed into a foreign company and successfully landed on the New York Stock Exchange. In 2011, the United States filed a double anti-dumping case, and Suntech was in a great embarrassment. However, with the mayor's on-site work, Suntech received the first batch of 200 million yuan of funds from the Bank of China...
With the care of the government and the bank, free land, capital quotas, electricity price subsidies, low-interest loans, and free sewage discharge, from the end of 2005 to 2008, Suntech's photovoltaic production capacity soared from more than 100 megawatts (MW) to 1,000 megawatts (MW), jumping from a newcomer in the industry to the world's number one.
So far, Shi Zhengrong has become the "Bill Gates" of the photovoltaic industry. But the American Gates does not like to deal with the government, and has never received government subsidies. Instead, the government warned Microsoft that it was over-monopolizing the market and wanted to dismember it. Gates fought resolutely against them. Gates also has a problem. He does not take first class when traveling on business, although the money is all earned by himself and is not involved in corruption. The difference between Shi Zhengrong and Gates is that, apart from the government's care, Shi also pays attention to form. He spent $200,000 to charter a plane to the Davos Forum. It is reported that Shi likes luxury cars, such as Lexus, BMW, Bentley, etc., and rides in different cars for different people. Women also have the same characteristics, wearing different dresses and carrying different bags on different occasions.
In fact, the government not only cares for photovoltaic companies, but also for those profit-seeking developers. Among the nearly 20 real estate companies' 2012 annual reports just released, 15 of them marked "government subsidies" with a total amount of more than 1 billion yuan, such as SOHO China, Shimao Real Estate, etc. Think about it, will Pan Shiyi be short of money?
Scholar Wu Jinglian also talked about government care: Technological innovation is rewarded by the market. It makes no sense for the government to use money to reward a technology. What is the final result? Look at what our photovoltaic industry has become. Wu Jinglian also mentioned LED, which is being made in China; he also mentioned the plan of 10 cities and 1,000 electric vehicles, which is being implemented in more than 20 cities.
Looking at the photovoltaic industry, after 10 years of explosive development, China's photovoltaic capacity has finally reached a limit. It is said that in 2011, the global photovoltaic module capacity was about 50GW (1GW=1000MW), and China had about 30GW of existing and under construction. Photovoltaic has become a leftover woman. No matter what kind of dress or bag you carry, it doesn't work. Prices have plummeted, and people are frowning. Finally, on March 18, the creditor banks that once regarded Suntech as their ancestors jointly submitted an application for bankruptcy reorganization to the court. Suntech owed money equivalent to RMB 7.1 billion. On March 20, Suntech implemented bankruptcy reorganization.
Note that bankruptcy reorganization is not bankruptcy liquidation. Here, there is the care of the mother - after the reorganization, Suntech may be reborn. This makes me depressed.
My middle school classmate Zhang Xiangdong has been in the German photovoltaic industry for more than 20 years. He said that he was the only Chinese person in every industry meeting, and he was very proud of it. But when he was drunk, he shocked me with a sentence: All the pollution was left to China. Later, he stopped working in photovoltaics and opened a hotel. Once he went to Wenzhou to buy a complete toilet for the hotel, and the price was only 1/3 of that in Germany. I looked at him sideways: The plastic used in the toilet is also polluting during manufacturing, and it is also left to our fellow countrymen, right?
Photovoltaic products can convert clean energy, but the production of photovoltaic products is polluting. Every ton of polysilicon produced will produce more than 4 tons of silicon tetrachloride waste liquid. China does not master the trichlorosilane reduction method for producing polysilicon, so the Chinese left the pollution to themselves and gave clean energy to others. Similar examples include China's rare earths, coke and steel. It's not that foreigners can't do it, but they are unwilling to do it and don't want to ruin their own environment.
Although the Chinese are so dedicated, they still attract the EU's big stick, which is really annoying. On the other hand, although the EU's big stick will destroy many of China's foreign exchange earnings and workers' jobs, it will also reduce China's pollution, so we are not completely defeated. However, it is difficult to expect Chinese officials to wield this big stick.