New energy enters the “falling event” How can the government save the “crisis”

Huge losses, layoffs, bankruptcy... In 2012, China’s new energy industry entered the “falling event”. In the face of the crisis, should the government "save the market"?

Southern Weekend Green Round Table invited Liu Shengjun, Vice President of the Central European Lujiazui International Finance Research Institute, Shi Dingzhen, State Council Counselor, Chairman of China Renewable Energy Society, well-known financial commentator Ye Tan, Vice Chairman of China Renewable Energy Society Meng Xianyu and Jingke Energy Limited Chen Kangping, CEO of the company, discussed how the government can save the "new energy crisis."

Southern Weekend: Recently, the survival of new energy companies is difficult. The market is calling for the government to make a "save the city" voice. What do you think?

Shi Dinghuan: The new energy industry is of course saved. We cannot watch this emerging industry fall. This is not only a problem of the industry itself, but also a large part of external reasons, such as international suppression, trade protection in Europe and the United States--" "Double-reverse", if the backbone of new energy companies have collapsed, then who will develop new energy industry?

Chen Kangping: As a representative of the company, I think it should save the market. As far as the global outlook is concerned, new energy is undoubtedly an emerging and sunrise industry. Secondly, in addition to the solar photovoltaic industry, which industry in China can quickly dominate the world, half of the country? Therefore, we should cherish this rare achievement, not let it go its own way, and be shuffled and washed away.

Ye Tan: New energy companies have lost their boundaries in market expansion, and the government should never save the market. The government has always said that it wants to withdraw from the micro-economy, but every time they encounter problems, they are looking for the government. This time, the market should decide. The government does not encourage new energy companies, but encourages too much. As a result, some new energy companies have no ability to resist the economic down cycle, and they can hardly be called enterprises.

Meng Xianzhao: More than half of China's more than 600 cities have developed the photovoltaic industry, blindly expanding and breaking away from market demand, resulting in a photovoltaic cell production capacity of more than 40 GW, while the world's total demand is only 30 GW - a free and disorderly expansion. The stage of this adjustment is that it is not appropriate for the government to rescue the market in this case.

Southern Weekend: From the past, the new energy companies have gone to the current difficult situation, what caused it?

Liu Shengjun: The reason why China's new energy industry can develop rapidly is that I think it is not a good technology, but a distortion of local government incentives, tolerance of environmental pollution, provision of electricity subsidies and even a large number of bank loans. These aids have caused a distortion in China's new energy industry. The advantage of this has only sprung up in the global.

Shi Dinghuan: The company itself has problems, but the domestic policies have not been implemented in time. Don't say now that the market is saturated, and the market demand in the future is very large. The policy and direction of the central government have not been implemented.

Southern Weekend: In the early days of the development of new energy companies, local governments did make a contribution. How can we evaluate the merits of local governments in this round of new energy boom?

Shi Dinghua: Due to the assessment of GDP, many places have never seriously analyzed the market. At first glance, this industry is good, and they are desperately developing. They don’t go to the market and don’t see whether the products can be sold.

Liu Shengjun: Today's PV companies have already put forward a very big warning to the reform of local governments. Local governments are too involved in economic activities, which must be paid enough attention. The local government is corporatized, and the solar industry is a typical phenomenon. Nowadays, many governments see companies going bankrupt and going to the bottom, which makes the enterprises that are losing money more and the government is more protected. This is very stupid, and the whole industry is disrupted by such irrational protection as local governments.

Southern Weekend: Next, what do you want the government to do?

Chen Kangping: When the "double-reverse" mountain rains in Europe are coming to the wind, I hope that the national level can do its utmost to let the EU not start a trade war. This is the most important "saving the city" measure of the government.

Second, the government should take immediate action to support truly competitive enterprises. If not, the industry is likely to be wiped out. Nowadays, enterprises are losing money, and all localities are "not abandoning and not giving up" and supporting all local enterprises. This leads to the smaller and smaller living space of good enterprises, and their physical strength will be continually consumed and eroded. The "squeezing effect" on them is becoming more and more obvious and will only drag down the entire industry. The central government must now have an assessment to see which companies are truly competitive, and it is time for the strong man to break his wrist.

Ye Tan: Now local governments should no longer lobbied the ministries and commissions to introduce new policies to “save the market”, and they should not adopt a procrastination strategy. They should quickly rely on the market and attract market forces such as M&A funds to assess the current situation of enterprises. Bankruptcy, the integration of the integration, if there is no way to integrate, it is better to die early than death.

Southern Weekend: When discussing "rescue" or "not saving", some enterprises and scholars put forward "selective rescue". What is the selection criteria?

Shi Dinghuan: The so-called "saving the city" should be the core of the industry that can meet the needs of the 12th Five-Year Plan, including the 2020 energy conservation and emission reduction plan and energy structure adjustment, and is beneficial to the development of renewable energy. The current situation is that the market has been hit hard, and most companies are losing money, and they have already reached the core enterprises. "Selective rescue" does not mean that the industry does not have the market rule of survival of the fittest. Do not oppose the survival of the fittest and the government to save the market.

Chen Kangping: The viability and health of the company should be judged from the perspectives of asset-liability ratio, the degree of operational benignity in the next six months, the development of normal business, and market share. If the government does not save now, this company will be able to survive in the next year, that is, healthy, if it will close immediately, it belongs to the category of elimination.

Ye Tan: Some people think that it is necessary to "select the best" to encourage, but how to choose a good company? Use the previous selection mechanism to support the so-called "big business"? The reality proves that the previous mechanism is no longer applicable - the practice of supporting the "big business" in the past is a kind of gambling from beginning to end, and the probability of losing is much greater than the win.

Liu Shengjun: " Selective rescue" is not simply a choice of large enterprises. "Big enterprises" are not more remarkable than others. They cannot be bankrupt because of the size of the company. Any enterprise has problems in management and has encountered an economic crisis. The bankruptcy will go bankrupt. No one is "cannot" go bankrupt. The government should not artificially influence the adjustment of the industry's self.

Southern Weekend: The above talked about various sayings about saving the market. How do you view the current status of new domestic energy sources and how will it develop in the future?

Chen Kangping: Now the industry has a short-term problem. I think it is the relationship between the left foot and the right foot. The left foot is the production capacity and the right foot is the market. The problem now is that the left foot is too big, but the right foot will catch up. of.

Ye Tan: The current situation of China's new energy companies illustrates an old problem. It is a bit like A-shares. It is no matter how bad it is, it will not fall. Everyone is a dead bird. This situation exists one day. China has no market economy for one day.

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