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China and India PV trade war!

China and India PV trade war!
At the end of July, the Indian Ministry of Finance officially ruled on the investigation of safeguards against photovoltaics, which will impose a safeguards tax on solar pv products (including crystalline silicon cells and components and thin-film batteries and components) entering China, Malaysia and developed countries.According to the Times of India, 90% of the solar cells and components used in India are imported from China and Malaysia.
The protection tax will last for two years. The tax rate for the first year (July 30, 2018, July 29, 2019) is 25%, the tax rate for the first half of the second year is 20%, and the second half is 15%.
But recent news shows that India's safeguards tax has led to high component purchase prices, and India Solar has cancelled 2.4 GW of the 3 GW bidding project.
The Indian government increased the protection tax, which on the one hand raised tariff revenues, but on the other hand pushed up the price of its domestic components. India’s installed mission this year is hard to complete.
For India, where current production capacity is still difficult to match its installed capacity, this is a double-edged sword. The guarantee tax is only implemented for two years and the tax rate is reduced year by year. It is also helpless.
India is the largest overseas export market for PV products in China. In recent years, it has been highly valued by Chinese PV companies. The data shows that the total amount of PV modules exported to India in China reached 9.46GW (1GW=1000MW) in 2017, accounting for about 25% of total exports.
Previously, China's components were the largest supplier to the Indian market, but by May 2018, the number of Chinese components exported to India was only about 3.1 GW, a decrease of about 33% compared with the same period in 2017.
By 2020, 100GW of solar installed capacity will be realized, equivalent to annual demand for photovoltaic modules in India will increase by about 10GW.
After the tax on photovoltaic industry safeguards, India’s installed capacity in 2018 fell to between 8.5 and 9.6 GW. India's own production capacity is about 2.5GW at the end of the battery, even if it is calculated according to the estimated minimum installation in India, there will be a gap of 6GW. Even considering areas such as Vietnam and Thailand that are not affected by safeguards, it is still a drop in the bucket.
This huge gap can only be filled by China's production capacity. Some analysts believe that India's approach is too radical, whether it is to protect India's domestic solar energy companies or to suppress other related countries. Modi's strongly advocated India's "World Factory" program is a slogan made in India. However, this slogan is based on India's rich and cheap resources, of which electricity is an important one. It is difficult to realize the grand blueprint of India's “world factory” by relying on the existing capital, production and technical strength of Indian PV companies.
Therefore, some experts said that India has three levels of intention: to weaken the competitiveness of Chinese component suppliers and maintain local PV manufacturers, the ultimate goal is to force Chinese companies to invest and build factories in India.
Under such circumstances, we firmly believe that India always has huge demand for solar energy products, so DAH solar participated in the PVc exhibition in New Delhi in September as usual, and visited the local cooperative and potential customers in India to seek the following Cooperation possibilities, on the other hand, DAH solar is also actively promoting BIS certification, regardless of PV modules or PV systems, and hopes to seize more Indian markets in the future. We have engaged in the production of Polycrystalline Solar Panels,Monocrystalline Solar Panels for many years. It can be used for all applications,including Civil and Commercial solar power station.
Visit us today: Dahsolarpv.com
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