Asian Perspectives Global Issues


Services in Global Value Chains: Solar Panel Manufacturing in China

Services in Global Value Chains: Solar Panel Manufacturing in China

Posted on Friday, April 24, 2015

Vice President of Research Patrick Low supports this study on solar panel production, which sheds light on the variety of services used in global value chains.

This case study of a Chinese solar panel producer investigates the role of services in manufacturing value chains, and highlights the effect of government policies on photovoltaic industry development and international trade flows.

Up to 40 types of services are required to manufacture solar panels, of which most tend to be outsourced, rather than supplied in-house. At this point in the photovoltaic value chain, services account for one quarter of the total cost of production. The case illustrates how both domestic and foreign government policies can impact solar panel manufacturing and export. The study was conducted in partnership with the Fung Global Institute and forms part of a broader study on services in global value chains.

This paper was written with the support of Vice President of Research, Patrick Low.

Disclaimer: The views expressed in this paper are those of the authors and do not necessarily reflect those of the Fung Global Institute. The authors are solely responsible for any errors or omissions.

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