Beijing bets on alternative energy

 

At the largest solar panel factory in the eastern Chinese city of Wuxi, labor is so cheap that workers do the work by hand while machines designed to do the same tasks gather dust.

Low labor costs combined with mass production of panels (14,000 workers involved), have enabled China's Suntech Power Holdings Co to become a global leader over the past ten years. Chinese manufacturers currently dominate the global solar business market. However, their success has been one reason for disgruntled U.S. companies who believe their competitors have access to cheap loans from state-owned banks and direct government subsidies. Suntech denies the allegations and says it is using a strategy of keeping prices low to make solar energy more affordable to more people. As early as this month, the U.S. government could impose duties on products from Chinese manufacturers. At least three U.S. solar companies collapsed last year after global prices fell, including Solyndra Inc, which was subsidized under guarantees from U.S. President Barack Obama's administration.
Workers on the Suntech assembly line receive (base salary) from 1,500 yuan ($ 238 US) to 1,800 yuan per month, and the factory operates 24 hours a day.
China is the world's second-largest consumer of oil, but it's making big strides toward clean energy. To promote solar power, the Chinese government last year began introducing guaranteed prices for producers, which will make it more attractive to generate electricity from solar power.

 

Based on foreign press for ForTrader.org