China@Wharton reports:

China’s solar sector follows the pattern set by many ofthe country’starget
industries, including steel and aluminum, historically. “This is just the latest
example of a long list of industries that have run through those peaks and
valleys,” says Louis Schwartz, president, China Strategies LLC, a Pittsburgh,
Pa.-based China trade and investment consulting firm. “It starts with government
incentives. In an incredibly short period, [the industry] develops enormous
capacity, helped in large measure by the banking system, and the desire of
towns, villages or provinces to foster a new industry for employment
purposes.Once they get started, they have a hard time stopping.”

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