Understanding China, One Blog at a Time

An American in China

Solar Panels- China’s Overcapacity Problem

Posted by w_thames_the_d on June 29, 2013

China has built up too much capacity, with little to know heed being paid to market needs. Take solar panels, for example. Today China has twice as much capacity as the world needs. In other words, China’s solar panel manufacturing plants can make two times as many solar panels as the world uses today.

As a result, China over produces and then dumps excess product on the world markets. They do this to get rid of product, while trying to keep people employed at home.

This is just one example of how communist control over means of production are perverting markets across the world. A consequence of this is that world manufacturers are knocked out of the game. The Chinese who are left suffer from poor quality and little to no innovation. We are all now forced to buy more made in China garbage.

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