Are world challenges propelling Chinese PV sector into new globalization era?During the 14th Five-Year Plan (2021-25) period, China's photovoltaic (PV) industry has shifted its focus from merely exporting products to exporting advanced technologies and high-quality capital, news site stcn.com reported on Monday. This evolution marks a strategic maturation of these companies in their approach to global markets.
However, this transition has not been without challenges. These difficulties present obstacles for Chinese PV firms, but they could also act as a catalyst for more rapid reforms and adaptations, potentially accelerating the sector's advancement into a "3.0 era" earlier than anticipated.
Summarizing the report from stcn.com, Chinese PV companies are expanding their global footprint. In the initial phase of 14th Five-Year Plan (2021-25) period, their international expansion was primarily through product sales. By the end of the period, they have diversified their approach, including setting up manufacturing facilities overseas, to achieve a full industry chain globalization.
Some industry insiders indicate that the Chinese PV industry is continuously elevating its level of internationalization. The shift from "made in China, sold globally" to "manufactured globally, sold globally" is underway, bringing safer, more reliable, and cost-effective solar products to the international market.
Producing globally and selling globally can, to some extent, be seen as the 2.0 version of the globalization of China's PV industry. By localizing manufacturing, it brings Chinese capital and advanced technology to local markets, thereby benefiting local development and the energy transition.
This globalization 2.0 has been underpinned by the continuous technological advancements of Chinese companies. At the 2025 Intersolar Europe exhibition, one of the world's most influential events in the PV industry, held in Munich this May, 850 Chinese companies showcased their latest technologies and solutions, accounting for about one-third of all participating enterprises, fully demonstrating the comprehensive strength of China's new-energy industry chain, according to the Xinhua News Agency.
In recent years, China's PV sector has made significant strides in internationalization, driven by continuous technological innovation and a well-developed production system. Notably, some Chinese companies have established production bases in overseas markets, thereby establishing integrated overseas manufacturing capacity and a complete supply chain system.
However, China's PV industry faces challenges in its international expansion. These challenges include frequent fluctuations in production capacity cycles, trade regulations, uncertainties in the global supply chain, diverse customer demand, and differences in standards.
Although China's PV industry faces challenges, its internationalization efforts remain on track. To address these obstacles, the Chinese PV sector is continually adapting to better align with the changing dynamics of the international market. While the adjustment process can be challenging for industry insiders, it may ultimately drive the industry to grow more swiftly, adopting more flexible strategies to navigate the uncertainties of the international market.
Liu Yiyang of the China Photovoltaic Industry Association was quoted by news site cnenergynews.cn as saying in January that Chinese PV companies should focus on exporting management expertise, distribution channels, branding, and technology. They should leverage local resources and talent overseas, collaborate with foreign companies, and integrate into the local socio-economic development.
Many companies have already adopted this approach. Since the beginning of this year, a growing number of Chinese firms have been exploring new models for expanding overseas, such as partnerships with local businesses for joint ventures.
This can be seen as the next phase, or 3.0, of the globalization of China's PV industry. Unlike the 2.0 era, which focused primarily on global production, the 3.0 phase is expected to encompass a broader range of activities, including management and branding. Chinese PV companies are taking flexible management and green finance abroad, helping regions such as Southeast Asia and Latin America access affordable green electricity and accelerating the global path to carbon emissions reduction.
As Chinese PV companies upgrade their overseas strategies by building integrated supply chains abroad, they are driving down international supply chain costs. This "full-value-chain going global" approach not only strengthens local manufacturing capacity and creates jobs, but also propels the energy transition - serving as a stabilizing force in the green transformation of the world's energy structure.
The internationalization of Chinese PV companies is based on the development of China's PV industry. China is the largest PV market in the world. The continuous development and technological advancement of Chinese companies in this market - which also welcomes the participation of international companies - will become the driving force for their internationalization.
