China’s photovoltaic industry has gone from 0 to 1, transforming from small to strong in the past two decades, and gradually building up an international discourse across the industry in the process. For CEIBS Professor of Entrepreneurial Management Practice Yan Gong, the breakout of China’s PV industry in the past came from “cut-throat” and brutally realistic competition. Only by relying on technology-led, continuous innovation, and calm strategic determination and layout capabilities, were PV companies able to thrive in this red ocean.
The reason this competition was so brutal wasn’t solely due to the rise of China‘s photovoltaic attenuation. In fact, it has been clear that the US (as the representative of various countries’ interests) has continued to suppress China’s photovoltaic industry. Just recently, the US sparked a heated debate about whether to end the tariff exemptions for four Southeast Asian countries. If the resolution passes, tariffs on solar panels imported from Southeast Asia could rise as high as 254%.
“China’s photovoltaic industry is getting stronger and stronger, and this trend is unstoppable in the long run, so some countries are using some short-term strategies to stop it, but it’s actually a drop in the bucket,” says GEMBA 2020’s Li Qian, who has been in the PV industry for twenty years and started her own business three years ago. Remaining confident in the development of China’s PV industry, she chose not to retreat despite the difficult road ahead; on the contrary, she has figured out how best to survive in this arena of brutal competition by mastering the art of subtraction.
