Many governments worldwide face increasing pressure to raise energy standards, intensify environmental protection, and pay more attention to renewable energy. Solar energy is widely considered one of the most important, and its exploration and utilization have become a fundamental part of the long-term sustainable development strategy. In the future, solar energy is expected to take a much more important position in all energies used by human beings.

The photovoltaic power generation industry has been backed by various countries, with especially great support from European countries in particular. Solar cell demand in the world is growing rapidly, so current solar cell supplies are falling short of demand in the global market. Boosted by the current international environment-focused movements, solar cell demand in the global market continues to increase, providing an impetus to the rapid development of China's own solar photovoltaic industry.

Recently, eight large industrialized countries, including the UK, Canada, French, Germany, Italy, Japan, Russia and the US met on July 7~9th of 2008 to hold the summit in Japan, with the hope to develop joint economic policies aimed at global reduction of exhaust gas emissions, with an immediate goal of reducing harmful emissions in each of those countries by 2013.

The rapid development of the solar cell has lead to the focused development of new material supplies of polysilicon, which is in very short supply globally. Most solar cell companies can not run at full capacity, with their operation rates reaching only 30% to 40%. Under such conditions, the price of polysilicon has skyrocketed. The abnormal "profiteering" of polysilicon producers has greatly stimulated domestic companies to expand their production capacity or invest in such projects. A surge in the PV industry, an increasing demand for polysilicon, and a relaxed technology threshold have stimulated many companies to pour huge sums of money into polysilicon projects with amazing production capacity.

Some international polysilicon giants have worked out plans to vigorously expand production capacity, while a great number of global investors have been lured into polysilicon production, which is integrating new processing techniques aimed at large-scale production.

This supply/demand imbalance is expected to ease off around 2009, when many of these new projects have begun operating successively. It is forecast that after 2010, the price of polysilicon in the international market will fall, following a rise in production capacity, which will lead to increasingly stronger competition. Competition of processing techniques and production costs will be the key factors in deciding the fate of the companies invested in polysilicon production.