The Development of the Chinese Photovoltaic Industry: an advancing role for the central state?

Abstract

This article assesses debates on state recentralization and economic rebalancing through a study of the photovoltaic (PV) industry. Based on empirical data and interviews, the authors examine different means and incentives of state support in this sector. First, in the context of the rise of PV firms (2001–2008), local government acquired a dominant role in supporting the sector. Second, against the backdrop of an industry downturn (2009–2013), this article demonstrates an advancing role of the central state in the industry. The authors thereby develop a nuanced perspective on the notions of recentralization and sectoral rebalancing. On the one hand, the government indeed utilizes its power to facilitate a rebalancing of the industry towards the domestic market. On the other, both recentralization and rebalancing efforts remain limited.