Chinese PV industry gets more Government support

The State Council, China's cabinet, said in July that the country aimed to more than quadruple solar power generating capacity to 35 gigawatts by 2015 in an apparent bid to ease a glut in the domestic solar power industry.

In a statement published on its website, the State Council said the Ministry of Industry and was taking measures to "promote the healthy development of the photovoltaic industry".

The ministry said it was implementing the July directive by supporting consolidation in the industry, drafting guidelines for mergers and acquisitions and promoting standardization.

The ministry aims to encourage technological innovation, especially related to decentralized solar power installations not connected to the power grid, as well as to support research and development efforts for batteries that can store solar electricity. 

Citing preliminary estimates from the China Photovoltaic Industry Alliancehe, the State Council said the solar industry had enjoyed a recovery in 2013. Total installed solar power generating capacity increased by around 8GW, of which 6GW were in power plants and 2GW were in decentralized instillations.

Still, Chinese solar equipment producers like LDK Solar Co Ltd are in danger of facing bankruptcy.

China's support for its solar industry has been a source of trade friction. The United States and European Union have accused China of dumping underpriced solar panels on foreign markets and China has responded with anti-subsidy duties of its own.