China's green industry expands westward
09 September 2012
Domestic pressures are mounting on China's green energy industry as growth slows.
Chinese companies could respond by accelerating their expansion overseas, stoking a rising east-west tension in the race towards a low-carbon economy.
The European commission has just announced an investigation into allegations that Bejing firms are "dumping" cheap solar panels in European markets. Simultaneously Chinese green companies are being hit at home by logjams on the power grid, the wider national economic downturn and increased domestic competition.
These temporary setbacks are likely to increase Chinese activity overseas, rather than reduce it. There are already signs that Chinese and other Asian firms are buying European competitors hit by the credit crunch, the running-down of local subsidies and low-cost competition from abroad.