Why China’s clean tech glut is a net global positive

This has global repercussions. For example, in the solar manufacturing supply chain, China accounts for 93 per cent of the global polysilicon production capacity, a key input for solar panels. Its dramatic scaling-up of production to globally dominant levels has drastically reduced polysilicon prices.

Other nations are struggling to compete. While prices for polysilicon produced outside China have remained high – at around US$21 per kg – within China, this has fallen to US$4-US$5 per kg.