Beijing yesterday pledged to boost the use of solar power by giving subsidies to projects producing electricity from solar energy.
The Ministry of Finance said government subsidies would cover half of equipment costs in solar power projects, a decision that could increase demand for solar power and reduce exports, easing trade spats between China and the United States.
Washington is investigating a complaint that Chinese solar and wind power equipment makers are exporting their wares to the American market at unfairly low prices as a result of Beijing's subsidies.
The subsidies to bolster sunlight-driven power generation in the domestic market could increase demand at home and encourage equipment makers and solar cell producers to sell more products to the nation's own projects.
The ministry said China had also created 13 industrial parks as specialised zones for solar energy development.
The announcement comes at a time when government officials from around the world, including those from China and the US are meeting in Mexico's Cancun to discuss global warming.
China hopes to diversify its use of energy. More than 70 per cent of its power generation is currently coal-fired. Analysts said Beijing would have to encourage wide-ranging applications of renewable energy in the coming years as it seeks to cut emissions while pursuing rapid economic growth.
