Industrial Competitiveness of Photovoltaic Manufacturing Industry: China and the United States

The photovoltaic (PV) manufacturing industry in China and the United States plays and will continue to play crucial roles in the worlds solar energy development. For example, China has become the world's largest PV supplier, and the U.S. is the second largest one. However, this industry in both countries is facing challenges: China faces the threat of overcapacity, while the U.S. grapples with dependence on imports. These challenges are vital for policy-makers to consider making new or modifying current policies to address. Recognizing the connections between threats and policies, this paper highlights these two factors based on SWOT analysis and evaluates the competitiveness of PV manufacturing in China and the U.S. based on International market share (IMS), Revealed Comparative Advantage (RCA), and Trade Competitiveness Index (TCI). The key finding of this paper is that despite its overcapacity threat, China still maintains its first position in this industry; while the U.S. has strong potential, its development just started. The outlook of this industry based on competitiveness and technology innovation of both countries will also be included in this paper.