Leading Chinese solar manufacturers raise prices after rebate removal, Michael Pettis notes

Leading Chinese solar manufacturers raise prices after rebate removal, Michael Pettis notes
Chinese solar firms increase prices

Chinese solar module manufacturers are increasing product prices after China decided to end the 9 percent export value-added tax rebate for photovoltaic products. Michael Pettis highlights that although major producers have acted on the new policy by adjusting prices, the broader market has yet to respond.

The impact of these price hikes on overall market dynamics remains to be seen, as smaller players and buyers appear to be awaiting further developments.

Pettis has previously pointed to concerns that a lower China GDP target of 4.5-5.0 percent could intensify debt and deflation pressures, according to one recent report. He has also noted changes in how net FDI flows are managed, with increased state bank recycling of surplus funds offsetting larger current account surpluses. These shifts frame current developments in China’s export and industrial policies.

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