The GCL Group Makes Full Use of the “Belt and Road” Plat­form to Ex­pand Global New En­ergy Pres­ence

China's Foreign Trade (English) - - Special Report - By Liu Xin­wei

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.

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