In the previous video, we shared how Chinese photovoltaics fell from grace to the bottom. If it were in a free-market economy, Chinese photovoltaics might have had no chance of recovery after such a setback. Fortunately, China has advantages that many countries don't—national guidance and regulation.
Under normal circumstances in a market economy, the rise and fall of businesses are natural. However, these photovoltaic enterprises in China were associated with millions of jobs, hundreds of billions of dollars in capital, and the potential for China to secure a leading position in future energy.
The first measure taken was a lifeline. To address the funding challenges faced by photovoltaic enterprises, several major Chinese banks formed a consortium, providing a credit limit of $47 billion to support the industry. This helped Chinese photovoltaics survive the darkest moments and preserved the spark of technology.
However, relying solely on financial support was a temporary solution and didn't address the root issues. The major problem for Chinese photovoltaics was the small domestic market, preventing the formation of a profit-development positive cycle. The solution was to find ways to expand the domestic market, considering the substantial market size of a population of 1.4 billion.
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