China plans to formulate solar energy export restrictions, which will affect the development of green energy in Western countries.

(Reuters file photo)

[Financial Channel/Comprehensive Report] The global trade war continues to rage. In the face of the chip export restriction imposed by the United States, the Chinese authorities will consider restricting the export of solar panel technology to counter the United States. In this way, the green energy industry in Western countries will be affected. Influence.

According to Reuters, China manufactures 79 percent of the world's polysilicon for solar panels, 97 percent of solar wafers and 85 percent of solar cells.

Beijing will follow the strategy of the U.S. wafer ban and restrict the export of Chinese solar panel technology, including the technology and machinery used to produce solar panel components such as large silicon wafers, black silicon and ultra-efficient silicon ingots.

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Even though China dominates much of the industry's supply chain, the lack of access to Chinese solar technology is not an insurmountable problem for Western countries.

Western companies such as Applied Materials, the US semiconductor company, Enel, and NorSun, the Norwegian solar company, still have the expertise and property rights in solar photovoltaics.

While China's export ban won't derail the West's push for green energy, it will still slow the pace at which the U.S. can build a domestic solar supply chain.

According to reports, the United States is offering large tax credits to companies willing to provide solar panels; the European Union may also relax rules on industrial subsidies to seek clean energy development.

Building manufacturing capacity without Chinese equipment requires higher upfront costs, industry experts said.

Europe's solar industry capacity is still less than 10GW, while China's is about 300GW. For every 1GW capacity increase, Europe needs to spend 1 billion euros, and it takes a very long time.

Experts say it takes decades to build a new factory to produce products such as polysilicon, and four times as long to build a complete solar supply chain.

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