(Yicai) June 11 -- China's photovoltaic industry will likely complete the first phase of the international expansion of its entire supply chain within three to five years, according to the chairman of integrated energy service provider Golden Concord Holdings.

European countries, the United States, India, and others are increasingly emphasizing the autonomy and controllability of their domestic supply chains and raising tariffs, Zhu Gongshan said today at the opening ceremony of a PV industry exhibition.

Chinese firms are being forced to shift from exporting through Southeast Asia to comprehensive global expansion, moving from exporting solely technology and products to encompassing the entire supply chain, including equipment and raw materials, Zhu pointed out.

China's PV industry faces its strongest competition ever, making comprehensive global expansion an inevitable choice for domestic companies, Zhu noted.

The four major segments of the PV supply chain -- polysilicon, wafers, cells, and modules -- have fallen below cash, Yicai learned. Capacity has expanded about three-fold during the latest PV industry fluctuation cycle, but profit margins have dropped by around 70 percent.

The industry is experiencing something different from the usual three to five-year cyclical iterations, according to Zhu. The key reason behind the supply chain's forced internal competition is that the technology premium and marginal gains in power generation are diminishing, and localized technological improvements are insufficient to counteract the trend changes caused by supply chain imbalances, Zhu noted.

By focusing on key global regions, including the US, Europe, Southeast Asia, India, the Middle East, North Africa, and South America, Chinese companies will draw on the lessons learned from the first phase of their overseas expansions, leverage World Trade Organization rules appropriately, and establish new advantages for global operations, Zhu added.

Editor: Martin Kadiev