{"id":326817,"date":"2024-05-07T07:41:58","date_gmt":"2024-05-07T05:41:58","guid":{"rendered":"https:\/\/climatescience.press\/?p=326817"},"modified":"2024-05-07T07:42:01","modified_gmt":"2024-05-07T05:42:01","slug":"australian-local-manufacturing-solar-subsidies-to-go-to-china","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=326817","title":{"rendered":"Australian \u201cLocal Manufacturing\u201d Solar Subsidies to Go to China?"},"content":{"rendered":"\n
\"\"
Shi Zhengrong<\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

From Watts Up With That?<\/a><\/p>\n\n\n\n

Essay by Eric Worrall<\/strong><\/p>\n\n\n\n

\u201cI think you definitely need collaboration [with China]\u201d.<\/p>\n\n\n\n

\n

The \u2018Future Made in Australia\u2019 plan for solar panels relies on a crucial ingredient: Help from China<\/strong><\/p>\n\n\n\n

By James Purtill May 6, 2024<\/a><\/p>\n\n\n\n

Twenty-three years ago, a Chinese-Australian solar scientist moved from Sydney to Wuxi to build China\u2019s solar panel manufacturing industry from scratch, using technology developed in Australian universities.<\/em><\/p>\n\n\n\n

Shi Zhengrong became the world\u2019s first clean energy billionaire, nicknamed \u201cThe Sun King\u201d. China went on to dominate global solar panel manufacturing and, thanks to a mix of innovation and cut-throat competition, made solar the cheapest source of electricity in history.<\/p>\n\n\n\n

Australian science graduates filled the top technology roles at the biggest Chinese solar companies. And a solar cell design developed in Australia became the global standard.<\/p>\n\n\n\n

Meanwhile, Australia mostly stopped building<\/a> its own solar panels.<\/p>\n\n\n\n

Now, with the federal government preparing to ramp up Australia\u2019s own tiny solar manufacturing industry, Dr Shi sees the story coming full circle.<\/p>\n\n\n\n

\u201cIt\u2019s an exciting opportunity for Australia,\u201d he said, speaking to the ABC from China.<\/p>\n\n\n\n

\u201cI think you definitely need collaboration [with China], but I think Australia is in a better position compared to 20 years ago in China.\u201d<\/p>\n\n\n\n

\u2026<\/p>\n\n\n\n

The public reaction in the weeks since has been mixed. Many energy experts welcomed the plan as a way to ensure supply of a critical energy resource (solar will soon generate most of Australia\u2019s electricity) and carve out a slice of a growing global industry.<\/p>\n\n\n\n

But some economists and the federal government\u2019s own Productivity Commission warned it could lead to the government wasting money by subsidising the production of panels that China can make more cheaply.<\/strong><\/p>\n\n\n\n

\u2026Read more: https:\/\/johnmenadue.com\/the-future-made-in-australia-plan-for-solar-panels-relies-on-a-crucial-ingredient-help-from-china\/<\/a><\/p>\n<\/blockquote>\n\n\n\n

What did we do wrong, to be cursed with such a parade of economically incompetent politicians? The government\u2019s own productivity commission is warning it\u2019s a bad idea, but politicians would rather listen to an Australian trained Chinese scientist who has already made billions of dollars off Australia\u2019s economic incompetence, and stands to make billions more if this plan goes ahead.<\/p>\n\n\n\n

The following article is from 2006 \u2013 why Shi Zhengrong, the Sun King, chose China over Australia;<\/p>\n\n\n\n

\n

Arise the Sun King<\/strong><\/p>\n\n\n\n

September 12, 2006 \u2014 10.00am<\/p>\n\n\n\n

\u2026<\/p>\n\n\n\n

Many factors, including China\u2019s determination to attract its brightest minds back from overseas to help create new high-tech businesses, have contributed to Shi\u2019s good fortune. His company\u2019s rapid expansion has also been fuelled by rising global demand for solar cells, as governments in countries such as Germany and Japan, unlike here, have embraced clean energy.<\/p>\n\n\n\n

\u201cHe was the right person at the right spot at the right time to move in both Chinese and Western cultures,\u201d says Professor Martin Green, of the University of NSW, about his former student. \u201cHe was successful because of his own personal skills as a technologist and his ability to handle the managerial and political aspects of setting up and manufacturing in China.\u201d<\/p>\n\n\n\n

\u2026<\/p>\n\n\n\n

Content with his comfortable life in Sydney, he took Australian citizenship, but his homeland kept a close eye on this rising solar expert. At Chinese New Year and other festive occasions Shi was invited to celebrations at the Chinese embassy. \u201cIt was the policy of the Government to attract people like me \u2013 overseas scholars \u2013 to come back,\u201d he says. In 2000 representatives of the Wuxi region approached him with an offer of $US6 million to establish a conventional photovoltaic solar cell manufacturing plant. Shi was sceptical that he could turn a profit in China. \u201cThe system was corrupted. I didn\u2019t have any confidence [in returning],\u201d he says.<\/p>\n\n\n\n

He was also reluctant to give up his work on thin films \u2013 the technology of the future. But a two-week visit to China changed his mind. The infrastructure had improved and he could see that the handful of solar cell manufacturers there were losing money because of a lack of good technology.<\/p>\n\n\n\n

With his experience and plentiful ideas for how to set up a plant, he realised the business could be a winner. \u201cThere was already a great demand for solar panels.\u201d<\/p>\n\n\n\n

\u2026Read more: https:\/\/www.smh.com.au\/national\/arise-the-sun-king-20060912-gdoddr.html<\/a><\/p>\n<\/blockquote>\n\n\n\n

I\u2019m not criticising Shi Zhengrong\u2019s choices or actions. In Shi\u2019s place, if I had his skills and background, I might have made similar choices. He is undoubtably a brilliant scientist and a Chinese patriot who made a good decision for himself personally and for China, which made lots of Chinese people, including Shi, very rich \u2013 \u201cthe right person at the right spot at the right time\u201d.<\/p>\n\n\n\n

What I am criticising is the economic incompetence of Australia\u2019s politicians. Shi had sound economic reasons, in addition to the subsidy cash, to relocate to China. But what is the competitive advantage which suddenly makes solar in Australia a good idea?<\/p>\n\n\n\n

China dominates solar manufacturing because they have cheap coal energy. Low wages helped their competitive advantage, but the real key advantage is their low cost energy.<\/p>\n\n\n\n

But Australia still has higher wages, higher energy costs, more environmental regulations and higher taxes than China. None of the economic advantages which convinced Shi to move to China have changed \u2013 China is still the more cost effective location to manufacture solar panels.<\/p>\n\n\n\n

Even if you believe Australia is the better place to deploy solar panels, and there are arguments for and against this position, this doesn\u2019t change whether China is the best place to manufacture solar panels.<\/p>\n\n\n\n

If there was a real economic opportunity to manufacture solar panels in Australia, Australian businesses would be jumping all over it, leaping to fill the gap in the market. No government subsidy would be required to convince Aussie businesses to take advantage of a big profit opportunity.<\/p>\n\n\n\n

The only competitive advantage Australia is publicly offering right now is lots of free money. But free government money is not enough to build a sustainable business, because solar manufacturing in Australia will dry up the moment the money stops. Giving away subsidy money with every sale of subsidised Australian manufactured goods would impoverish Australia, not give us a competitive advantage.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

What did we do wrong, to be cursed with such a parade of economically incompetent politicians? The government\u2019s own productivity commission is warning it\u2019s a bad idea, but politicians would rather listen to an Australian trained Chinese scientist who has already made billions of dollars off Australia\u2019s economic incompetence, and stands to make billions more if this plan goes ahead.<\/p>\n","protected":false},"author":121246920,"featured_media":326819,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691818216,691818341,691818412],"class_list":{"0":"post-326817","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-australia","9":"tag-china","10":"tag-solar-panels","12":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/05\/0Zhengrong-Shi-panel-solar-TSO-SBC-3.webp?fit=1500%2C1092&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1n1f","jetpack-related-posts":[{"id":393057,"url":"https:\/\/climatescience.press\/?p=393057","url_meta":{"origin":326817,"position":0},"title":"Shh! 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