Recognized worldwide as environmentally friendly products, solar cells convert sunlight energy into electricity.
Solar cells can generate both direct energy and power that is stored in batteries for later use. They are often assembled into modules or solar energy panels, but can also be sold separately as solar energy cells.
Low-cost solar cells can generate electricity more cheaply than traditional grid power sources in areas with abundant sunlight. For example, California and Hawaii have relatively high electricity costs but are also blessed with long periods of sunshine.
China is a major producer and consumer of solar cell products. This analysis reveals China’s international trade in solar energy products during 2009.
The 6-digit prefix from the international harmonized system (HS) code for solar panels is 854140.
Chinese International Sales of Solar Cells in 2009
Chinese exporters sold US$10.7 billion worth of solar cells to customers around the globe in 2009. That figure represents an 8.7% drop from the $11.7 billion exported in the prior year.
China imported $4.3 billion in solar cells including parts and components during 2009, down 2.6% from 2008.
Overall, China posted an overall trade surplus of $6.4 billion in solar power energy device sales.
China’s Solar Cell Exports and Imports with the U.S.
China shipped $636.9 million worth of solar panels and similar energy devices to the United States in 2009. One year earlier, China’s solar exports to America totaled $462.4 million. Thus, China improved its solar product sales to the United States by 37.7% from 2008 to 2009.
American solar cell manufacturers sold $93 million worth of solar cell products to China in 2009, up 11.9% from $83.1 million in 2008.
China exported $543.9 million more than the solar cell products they imported from the United States ($636.9 million minus $93 million) in 2009.
While Chinese solar exports to America account for only 5.9% of China’s $10.7 billion in worldwide sales of solar cells, the People’s Republic has an indisputable advantage in trading solar energy products with the United States.
While the top 5 providers of solar panels plus the Philippines grew their sales to Canada in 2008, the remaining 4 exporting nations had declines ranging from 6.1% for Thailand to 25% for South Korea.
China’s Sales of Solar Power Equipment to Canada
In 2009, Chinese producers sold US$44.5 million worth of solar cell devices to Canadian importers. That figure represents only 16.5% of total Canadian solar imports bought from all countries. Canadian imports of Chinese-made solar cells fell by 6% in 2009, but rose by 2.7% for these other countries.
Canada’s sales of solar cell goods to China in 2009 were tiny, only $2.3 million. That amount is 27.8% less than the $3.2 million in Canadian exports to China in 2008.
China had a $42.2 million surplus in its trade of solar cell merchandise with Canada.
Chinese Dealers Selling Solar Cell Products
One of the reasons behind China’s competitive trade advantages over the United States and Canada is the vast number of Chinese wholesalers offering solar cell products with:
- Low processing costs
- Stable energy conversion rates
- Reliable performance even in weak light conditions.
For example, on the global trade website Alibaba.com there are about 27,000 suppliers of solar products from mainland China.
Five Chinese dealers that sell solar cell products including solar panels are listed below.
- Shenzhen Wanyelong Solar Technology
- Hunan Sunzone Optoelectronics Energy
- Ningbo Hebe Solar Company
- Zhejiang Cajaani Energy Technology
- Dongguan Machinery Import and Export.
For the first 8 months of 2010, China has increased its sales of solar cell products to American customers by 145% to $794.8 million.
As China’s sales momentum picks up, both American and Canadian manufacturers urgently need to develop more cost-effective technologies to compete with Chinese solar cell products.
Sources: This analysis presents independent calculations and insights based on the United States International Trade Commission’s Interactive Tariff and Trade Dataweb, United Nations COMTRADE database and Industry Canada's Trade Data Online.
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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