However, consolidation in solar manufacturing is not yet in the cards. Instead, the government is turning its attention to boosting domestic solar-power installations. At the same time, it is turning a blind eye to local governments' grandiose plans to ramp up production. As new-energy and high-tech activity remains a national priority, these plans are likely to come at least to partial fruition, exacerbating the problems suffered by the industry.
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Overseas demand, which absorbs most Chinese panels, is set to fall next year as tariffs are imposed and subsidies cut.
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