The GCL Group Makes Full Use of the “Belt and Road” Platform to Expand Global New Energy Presence
Road” are quite eager to join in the blueprint, which provides more opportunities for China’s photovoltaic companies. Photovoltaic companies are suggested to be prudent for entering the overseas market
Li Andong introduced that “Belt and Road” stimulates photovoltaic demands in the countries along the “Belt and Road” and connects the hot countries with photovoltaic demands, which brings opportunities for the Chinese photovoltaic companies. However, difficulties such as incomplete industrial chain, corporate finance and cultural difference exist for nudging into the overseas market.
According to Hu Huiming, vice president of GCL System Integration Technology, as countries vary in terms of economic development environment, political framework and investment demands, the Chinese companies have to prudently screen opportunities based on their own demands when “going global” for investment.
Zhu Gongshan said that apart from the above-listed challenges, in the course of globalization, the Chinese photovoltaic companies also have to confront finance difficulties in the overseas market.
“As most domestic banks classify photovoltaic loans into the restricted area and subsidies are decreasing due to the anti-dumping & countervailing duties policy from Europe and America, confidence is lack for future development of the photovoltaic industry and concerns exist for the overseas photovoltaic projects. Moreover, the photovoltaic companies have decentralized overseas investments, and co-movement and synergy do not exist in the photovoltaic industry and among the upstream, midstream and downstream companies. Blind investment may occur due to such problems like inadequate knowledge about the overseas investment environment, improper preparation as well as incomplete and unsystematic risk prevention measures,” expert from the photovoltaic industry Zhao Yuwen told China’s Foreign Trade.
In spite of a series of challenges, we may have some countermeasures. According to Zhao, credit support is supposed to be increased for the photovoltaic industry to invest abroad and if necessary government finance may provide guarantee to establish a state-level comprehensive investment & finance service platform for “go global”. In the meantime, the photovoltaic companies should join hands for carrying out overseas investments by encouraging both the upstream and downstream companies to jointly “going global”, which may help to strengthen anti-risk capabilities.