China Development Bank has loaned an additional $713 million to the country’s largest polysilicon producer, reports Reuters.
Since 2010, the state-run bank has provided over $1 billion in loans to GCL-Poly Energy Holdings, which produces the raw material used to make solar cells.
Low-cost state loans are a major reason China has been able to scale up its solar manufacturing industry so quickly and cheaply, pushing US manufacturers to the brink of collapse.
Last year, the Bank offered more than $25 billion in loans to China’s largest solar panel manufacturers which now are creating strong domestic demand for GCL-Poly’s silicon.
LDK Solar (NYSE: LDK) received a loan for $8.9 billion, Suntech Power Holdings (NYSE: STP) received $7.3 billion, Trina Solar (NYSE: TSL) received $4.4 billion, and Yingli Green Energy (NYSE:YGE) $5.3 billion.
Three US solar manufacturers filed for bankruptcy in the last five weeks – Solyndra, SpectraWatt, and Evergreen Solar – and each noted that it couldn’t compete with low-cost manufacturers in China at a time when oversupply in the solar module market is pushing prices down even further.
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You have forgot the 4,4 bn received by JA Solar.
I have estimated that the total subsidies is close to 100 bn due to the fact that in the last 4 years was established more than 200 new Chinese cell manufacturers (most of them with ingot, wafer and module production lines), and a coherent number of Polysilicon producers.
We have not to forget that the major allies of the Chinese products is the greed of the Finance guys that want the highest IRR, despite the fact that they are destroying the real economy.
The champions of the free market will refuse this view, but we want to continue to have a “paper economy” these are the results….