By some accounts, China is ready to trounce the United States in solar cell production, just as the Japanese automakers did in the car market more than a decade ago.

China needs to resolve internal policy and subsidy differences, says FBR analyst Mehdi Hosseini
Lavish subsidies from the Chinese government coupled with cheap labor, low-cost loans and inexpensive electricity give these companies an advantage over the more market-dependent firms on the other side of the Pacific.
Forget that the Obama Administration approved $2.3 billion in tax credits for clean-energy manufacturers last month. The battle might as well draw to a close before it has begun – according to some media reports.
This analysis is far from universal. In fact, according to some industry watchers, the Chinese market isn’t likely to reach substantial volume for a several years, nor will domestic consumption in this Asian country soak up the excess capacity presently in the market.
Demand projections across the industry are exaggerated and need to be revised lower at the same time as unneeded capacity needs be taken out of use, says FBR Capital Markets analyst Mehdi Hosseini.
In the meantime, China’s production will not expand as fast as some project and will not exceed 1 GW until 2011 at the earliest as government officials struggle to work out policy differences, says Hosseini
Hosseini identifies three main problems:
*Differences among central government, local governments, finance ministry, Academy of Sciences and Electric Power Research Institute policies;
*Conflicting interests among manufacturers and utilities on subsidy levels;
*Insufficient tax credit supports and no clear feed-in tariff.
Until China comes to a consensus, maybe it won’t be the solar tiger some would have us believe.