,MNB3701 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2025 (884546)- DUE April 2025; 100%
TRUSTED Complete, trusted solutions and explanations…
ALL QUESTIONS ANSWERED
Government Intervention in China
China is using its economic might to invest in Africa. China’s
ability to focus on dominating key industries inspires both fear
and awe throughout the world. A closer look at the solar
industry in China illustrates the government’s ability to create
new industries and companies based on its objectives. With its
huge population, China is in constant need of energy to meet the
needs of its people and businesses.
As a result, the government has placed a priority on energy
related technologies, including solar energy. China’s expanding
solar-energy industry is dependent on polycrystalline silicon, the
main raw material for solar panels. Facing a shortage in 2007,
growing domestic demand, and high prices from foreign
companies that dominated production, China declared the
development of domestic polycrastalline silicon supplies a
priority. Domestic Chinese manufacturers received quick loans
with favourable terms as well as speedy approvals from the
government. One entrepreneur, Zhu Gongshan, received $1
billion in funding, including a sizeable investment from China’s
sovereign wealth fund, in record time, enabling his firm, GCL-
Poly Energy Holdings, to become one of the world’s biggest in
less than three years. The company now has a 25 percent market
, share of polysilicon and almost 50 percent of the global market
for solar-power equipment.
How did this happen so fast? Many observers note that it was
the direct result of Chinese government intervention in what was
deemed a key industry. Central to China’s approach are policies
that champion state-owned firms and other so-called national
champions, seek aggressively to obtain advanced technology,
and manage its exchange rate to benefit exporters. It leverages
state control of the financial system to channel low-cost capital
to domestic industries—and to resource-rich foreign nations
whose oil and minerals China needs to maintain rapid growth.
Understanding the balance between China’s government
structure and its ideology is essential to doing business in this
complex country. China is both an emerging market and a rising
superpower. Its leaders see the economy as a tool to preserve the
state’s power, which in turn is essential to maintaining stability
and growth and ensuring the long-term viability of the ruling
Communist Party. Contrary to the approach of much of the
world, which is moving more control to the private sector, China
has steadfastly maintained its state control. For example, the
Chinese government owns almost all the major banks, the three
largest oil companies, the three telecommunications carriers, and
almost all the media.
China’s Communist Party outlines its goals in five-year plans.
The most recent one emphasizes the government’s goal for
China to become a technology powerhouse by 2023 and
highlights key areas such as green technology, hence the solar
industry expansion. Free trade advocates perceive this
Semester 1 2025 (884546)- DUE April 2025; 100%
TRUSTED Complete, trusted solutions and explanations…
ALL QUESTIONS ANSWERED
Government Intervention in China
China is using its economic might to invest in Africa. China’s
ability to focus on dominating key industries inspires both fear
and awe throughout the world. A closer look at the solar
industry in China illustrates the government’s ability to create
new industries and companies based on its objectives. With its
huge population, China is in constant need of energy to meet the
needs of its people and businesses.
As a result, the government has placed a priority on energy
related technologies, including solar energy. China’s expanding
solar-energy industry is dependent on polycrystalline silicon, the
main raw material for solar panels. Facing a shortage in 2007,
growing domestic demand, and high prices from foreign
companies that dominated production, China declared the
development of domestic polycrastalline silicon supplies a
priority. Domestic Chinese manufacturers received quick loans
with favourable terms as well as speedy approvals from the
government. One entrepreneur, Zhu Gongshan, received $1
billion in funding, including a sizeable investment from China’s
sovereign wealth fund, in record time, enabling his firm, GCL-
Poly Energy Holdings, to become one of the world’s biggest in
less than three years. The company now has a 25 percent market
, share of polysilicon and almost 50 percent of the global market
for solar-power equipment.
How did this happen so fast? Many observers note that it was
the direct result of Chinese government intervention in what was
deemed a key industry. Central to China’s approach are policies
that champion state-owned firms and other so-called national
champions, seek aggressively to obtain advanced technology,
and manage its exchange rate to benefit exporters. It leverages
state control of the financial system to channel low-cost capital
to domestic industries—and to resource-rich foreign nations
whose oil and minerals China needs to maintain rapid growth.
Understanding the balance between China’s government
structure and its ideology is essential to doing business in this
complex country. China is both an emerging market and a rising
superpower. Its leaders see the economy as a tool to preserve the
state’s power, which in turn is essential to maintaining stability
and growth and ensuring the long-term viability of the ruling
Communist Party. Contrary to the approach of much of the
world, which is moving more control to the private sector, China
has steadfastly maintained its state control. For example, the
Chinese government owns almost all the major banks, the three
largest oil companies, the three telecommunications carriers, and
almost all the media.
China’s Communist Party outlines its goals in five-year plans.
The most recent one emphasizes the government’s goal for
China to become a technology powerhouse by 2023 and
highlights key areas such as green technology, hence the solar
industry expansion. Free trade advocates perceive this
