Glut of Solar Panels Poses a New Threat to China

Posted by & filed under Part 1 Business in a Global Environment, Part 3 Management: Empowering People to Achieve Business Objectives, Part 4: Marketing Management, Part 5 Managing Technology and Information, Part 6 Managing Financial Resources.

Description:  China in recent years established global dominance in renewable energy, its solar panel and wind turbine factories forcing many foreign rivals out of business and its policy makers hailed by environmentalists around the world as visionaries.

Source: NYTimes.com

Date: Oct 04, 2012

Link:  http://www.nytimes.com/2012/10/05/business/global/glut-of-solar-panels-is-a-new-test-for-china.html?_r=2&ref=business&

Questions for Discussions:

  • What happened to China’s solar panel industry?
  • Why did overcapacity develop?
  • How will this industry adjust to correct for overcapacity?
  • Was this industry affected by the economic forces of supply and demand any differently because it was in China?
  • What lessons are there here for governments, businesspeople and investors?

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