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A senior govt at one in all China’s largest photo voltaic tools teams has referred to as on western governments to “let one of the best know-how win”, as Chinese language corporations and officers hit again in opposition to rising protectionism within the US and Europe.
Zhou Shijun, who leads international advertising for Arctech, a producer of mounting methods for large-scale photo voltaic installations, mentioned international locations risked slowing their response to local weather change by introducing commerce boundaries on Chinese language merchandise.
In an interview with the Monetary Instances, Zhou mentioned that imposing protectionist measures slightly than prioritising one of the best know-how would “come again to hang-out” the event of the renewable power trade.
Talking at Arctech’s headquarters in Kunshan, an industrial metropolis west of Shanghai, Zhou mentioned the onset of commerce boundaries was unfairly hitting producers of extra superior applied sciences that didn’t have extra output.
Zhou argued that the majority corporations within the photo voltaic trade with overcapacity issues had been producing cheaper, lower-end applied sciences. The dynamic is much like the auto trade, the place producers of vehicles with inner combustion engines have extra extra capability than these making electrical autos.
“We do have issues that geopolitical tensions are affecting our international enterprise. What we’re doing proper now’s diversifying,” he mentioned.
Zhou added that whereas China would “at all times” be its largest market, the corporate was concentrating on progress within the Center East, Asia and Latin America and had no plans to enter the US.
Shanghai-listed Arctech, which has a market capitalisation of $1.9bn, reported annual revenues of $886mn in 2023. Arctech’s monitoring methods help large-scale solar energy vegetation by rotating panels all through the day for better publicity to the solar.
China accounts for greater than 80 per cent of photo voltaic manufacturing globally, the results of years of state funding, intense native competitors and fast progress in home demand for inexperienced applied sciences over current years.
Regardless of forecasts of strong long-term demand within the sector, elements of the photo voltaic manufacturing trade in China have been turning to exports to promote extra provide. This has brought on costs to break down and sparked complaints from the US and Europe over Beijing’s industrial coverage and commerce practices.
On Tuesday, US President Joe Biden sharply elevated tariffs on Chinese language imports, together with electrical autos and photo voltaic cells. Two days later, he introduced plans to finish an exemption from Trump-era tariffs on a kind of photo voltaic panel unit typically utilized in giant initiatives.
The EU has, over the previous 9 months, launched investigations into China’s electrical automobile, photo voltaic and wind industries. European officers have additionally printed a report on state-induced distortions within the Chinese language financial system.
Zhou mentioned that as Arctech tried to extend market share exterior China, it was attempting to steadiness native necessities and know-how sharing calls for from abroad companions with out giving up mental property.
Regardless of concern about rising geopolitical pressure, Arctech believed the worldwide uptake of large-scale renewable power was “irreversible and inevitable” and anticipated the world to observe China in creating bigger photo voltaic installations, Zhou mentioned.
The corporate has three factories manufacturing its monitoring methods in China and is becoming a member of a rising variety of main Chinese language clean-technology corporations, together with electrical automobile maker BYD and battery producer CATL, in looking for new manufacturing bases nearer to international markets.
Arctech already has a manufacturing facility in India, a partnership with the Adani conglomerate, and is constructing a brand new manufacturing facility in Saudi Arabia. In Spain, the corporate has a analysis and growth facility and is planning to construct one other manufacturing facility in Brazil.
