“China’s PV is an extraordinary boon that China has bestowed upon all of humanity, bringing immeasurable benefits to the world! No other nation has been as instrumental in this development, making it a truly momentous contribution to the global community!" said Erik Solheim, former UN Under-Secretary-General, Chairman of the BRI International Green Development Coalition, and Co-Chair of the Europe-Asia Center, during the 2024 the 7th China International PV and Energy Storage Industry Conference held in Chengdu. Similarly, Sonia Dunlop, the CEO of the Global Solar Council, who also attended the conference, commented that China has offered the world an invaluable gift — affordable solar energy and the country is "rescuing" the world with PV. These esteemed global experts' unanimous recognition of the contributions of China's PV sector to the world is a phenomenon rarely seen in other sectors.

Erik Solheim, former UN Under-Secretary-General,

Chairman of the BRI International Green Development Coalition,

and Co-Chairman of the Europe-Asia Center, delivered an address at the conference

Sonia Dunlop, CEO of the Global Solar Council

was interviewed by the media group

What kind of game-changing influence has China's PV industry exerted on the sustainable development of humanity, such that it has received such high acclaim from the former UN Under-Secretary-General and the CEO of the Global Solar Council? To seek answers, we will explore the evolution of China's PV development, which has progressed from a state of being "reliant on foreign resources in three aspects" to becoming a "global leader" today.

1

What would the world be like without China's PV industry?

David Wallace-Wells, a prominent US media figure, posed a commentary article titled "What Happens if China Stops Trying to Save the World?" in The New York Times. He pointed out that China has completely rewritten the global narrative of the green transformation. With the astonishing decline in the costs of solar energy, wind energy, and cell technologies over the past few decades, coupled with a new wave of climate initiatives and significantly increased policy support, various green energy technologies are experiencing a remarkable exponential upswing. With each passing year, the advancements made render the conservative forecasts of traditional industry analysts outdated. He further noted that the recent substantial progress can be attributed predominantly to one country. When China is removed from the global calculation, the previously steep upward growth trajectory significantly flattens.

Taking solar energy as an example, in 2019, China's newly installed capacity constituted merely around a quarter of the global total. However, by 2023, it had surpassed half of the global new installations. In just five years, China's new installations increased by over seven-fold. In contrast, without China, the global increase was less than double. This year, nearly two-thirds of the large-scale solar and wind power plants built globally are located in China, and the scale of China's green energy deployment is more than eight times that of the rest of the world.

The intelligent manufacturing production line of high-efficiency modules of Tongwei

From the perspective of the global energy transition, it is heavily dependent on Chinese manufacturing. A remarkable statistic reveals that China commands an 85%-95% global market share across various segments of the PV industry. Against this backdrop, in line with the objectives of the global energy transition, the developmental requirements of different regions, and China's Belt and Road Initiative, China's PV is expanding at a fitting pace and in appropriate forms. Producing and utilizing resources in places where it has a comparative advantage may create a better ecosystem globally. It also enables Chinese capital, technology, and industry to genuinely partake in a more equitable global energy transition process.

Based on this, Liu Hanyuan, Deputy to the NPC, Vice Chairman of All-China Federation of Industry and Commerce, and Chairman of the Board of Directors of Tongwei Group, has repeatedly emphasized that no country can afford to falter. In the face of increasingly severe climate change. If the United States aims to decouple China in the renewable energy sector and establish its own supply chain behind closed doors, it may take 10 to 15 years to achieve; similarly, if Europe pursues the same strategy, it could take 15 to 20 years. However, the window of opportunity for attaining carbon neutrality is limited. Developed countries have scarcely 30 years, and developing nations have less than 40 years. This leaves no margin for hesitation or reversal. China, in tandem with countries across the globe and major institutions, must place emphasis on commonalities rather than differences. By adopting a holistic perspective, they should center their focus on the global energy transition. It is of utmost necessity to break down various bottlenecks and promote integration and sharing within the global renewable energy supply chain. Only through collective efforts can we expedite the tempo of energy transformation and wholeheartedly welcome the advent of the era of clean energy.

2

Why does China lead the PV sector by such a significant margin?

Over a decade ago, if one were to pose the question, "What would be the consequence if we lost China's PV industry?" the likely answer might have been, "It's of little consequence; it can be disregarded." Back then, China's PV industry was highly dependent on foreign sources for core materials, equipment, and markets, making it susceptible to external constraints. After the 2008 global financial crisis, coupled with the anti-dumping and countervailing measures from Europe and the United States, China's PV sector reached its nadir. This led to the closure of a large number of Chinese PV companies. It was during this challenging period that the domestic application market began to take off. After severe competition, those surviving PV enterprises, such as Tongwei, Longi, and Trina Solar, placed a strong emphasis on technological innovation and lean management, and grew into the mainstays of China's PV industry eventually.

Green plant area of Yongxiang Co., Ltd.

In the face of external suppression, China's PV sector has shattered its technological monopoly through independent research and development, as well as the introduction and enhancement of foreign technologies. This profound transformation has extricated the industry from years of dependence, achieving a remarkable evolution from reliance on external core materials, equipment, and markets to attaining multiple world-leading positions. In terms of market share, China's PV industry dominates with over 85% of the global market. Regarding production capacity, it accounts for more than 95% of silicon wafer production, over 90% of cell output, and more than 85% of module manufacturing. Moreover, China leads the world in terms of PV manufacturing costs.

McKinsey conducted a comparative study on the competitiveness of various industries in China and the United States. It reveals that China's PV sector is significantly ahead not only of the U.S. but also of Germany, Japan, and South Korea, thereby establishing a dominant global position with strong influence. As Chairman Liu Hanyuan put it, the success of China's PV industry is the result of the collective efforts of the Chinese government, industry peers, and the 1.4 billion people of China, built upon existing foundations and platforms. It is due to the leapfrog development of the "new three products" represented by PV products that China's new energy industry has taken a huge lead globally, leaving its competitors far behind.

3

China's PV is a great gift presented to the world.

In recent years, China's PV industry has risen to become a pivotal force in propelling the global energy transition. The overseas expansion of China's manufacturing prowess, technologies, and capital in the PV sector has not only augmented the global supply of clean energy but also played a vital role in the collective response to climate change.

Tongwei's high-efficiency modules inject robust green momentum into China-Africa cooperation

Currently, China's PV industry is undergoing a profound period of adjustment. Mr. Solheim offered a fresh perspective on the current development of PV in China. He noted that a global political narrative has emerged, suggesting that China faces overcapacity in solar energy, EVs, and cells. However, in the United States, while there is overcapacity in Apple’s mobile phone production, it does not attract criticism. Therefore, it is equally unjust to criticize China's overcapacity. China should be proud of its high productivity in the fields of solar energy, EVs, and cells, and it is such a high yield that meets the requirements of people all over the world. During the 2024 the 7th China International PV and Energy Storage Industry Conference, both Solheim, former UN Under-Secretary-General, and Sonia, CEO of the Global Solar Council, praised China's PV industry as a great gift from China to the world and as a means of bringing immeasurable benefits to the world.

It is perhaps this acknowledgment of China's PV industry's ever-growing significance in the global energy transition that has led Adam Tooze, a history professor at Columbia University, to proclaim in an article for the Financial Times that if global climate change demands a leader, it "can only be China."

"One fails to perceive the true visage of Mount Lushan simply because one is immersed within it". From the vantage point of international experts, we have even more compelling reasons to have faith in China's PV and in the promising future of the collective undertakings we pursue.