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Chinese Energy Market Entry

In: Business and Management

Submitted By swimmer981992
Words 4310
Pages 18
Chinese Energy Market

Michael Alexander
Landon Bunn
Thomas Burrus
Benjamin Duva
Marcela Horan

Table of Contents:

Executive Summary…………………………………………Page 3
Demand for Energy…………………………………………Page 4
Coal and China…………………………………………………Page 6
Solar Energy in China………………………………Page 8
Competition…………………………………………………………Page 9
U.S./China Relations………………………………Page 10
Recommendations……………………………………………Page 14
Joint Ventures………………………………………………Page 15
References…………………………………………………………Page 17

Executive summary
As the nation with the world’s largest population moves towards an industry focused on consumer products, the need for an abundant supply of energy becomes essential. While coal and oil are the current sources of energy, concerns about the quantity available and environmental problems force officials in China to look elsewhere for the country’s energy. Nuclear, wind, and hydroelectric power are all options in this field, but solar energy seems to be the most promising. This paper researches the history of energy demand in China and the potential of solar energy. By providing information about competition, the relations between China and the U.S., and methods of entry, we hope to give insight to those interested in entering the Chinese Energy Market.

Demand for Energy in China
Figure [ 1 ]
From the 1940s to the 80s, the Chinese economy grew from an output level of 18% to 44%, while the amount of energy required to match the economic output tripled. This created an immense need for energy, and an incentive to catch up to the rest of the world. In 1978, Beijing changed production targets for farmers in the agricultural sector. They also raised prices for agricultural goods and allowed the farms more sovereignty. This allowed the farmers to have a bit more time to relax, and have some extra spending money. This resulted in increased investment in...

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