China's domestic solar demand has been rising, but due to risks, Taiwan-based makers believe the best way to enter the market is to provide products such as solar cells instead of investing in projects.
Due to the global trade war, China's government has been trying to save the domestic industry by increasing subsidy budget and stimulating demand to allow the China-based solar supply chain to have stable distribution channels.
Some non-solar firms have been interested in investing in solar power plants. Firms such as automobile maker BYD plans to build a 500MW solar power plant in Shaanxi, China.
Furthermore, China state-owned enterprises reportedly have been contacting upstream solar makers that are currently facing net loss to expand strategic alliance.
Taiwan-based solar makers noted that it is difficult to obtain a share of China's market due to the complicated application process, project design, construction, grid connection, and power generation. These may depend on whether firms have connections to local and central government officials in China.