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Huang Ming: Let the Market Decide the Development of Energy Conservation and Environmental Protection Industry

2015-06-012857

In recent years, environmental issues closely bound up with everyone’s daily life, such as water pollution and air pollution, have occurred with growing frequency. Meanwhile, the depletion of traditional fossil fuels has become an extremely urgent problem. As a result, energy conservation, emission reduction and the utilization of new energy sources have attracted unprecedented public attention.

Recently, a reporter from International Financing traveled specially to the headquarters of Himin Solar Co., Ltd. in Dezhou, Shandong Province for an exclusive interview with Huang Ming, Chairman of Himin Solar Co., Ltd. (hereinafter referred to as Himin Company), who shared his unique insights on the development of China’s energy conservation and environmental protection industry. He pointed out that developing countries should draw lessons from China’s experience: besides addressing low-carbon transition, it is more critical to cut pollutant emissions. In his view, the sound development of the environmental protection industry cannot rely on government subsidies; it must follow a market-driven path.

Energy Conservation and Environmental Protection Ought to Become a Proper Way of Life

Humanity has taken many detours in the course of development. Over the past several hundred years, industrial progress, civilization, technological advances and living standards have undergone earth-shaking transformations, yet we have paid a steep environmental price. We have yet to fully reconcile humanity’s way of existence with the natural environment, and at this stage of development, an irreconcilable paradox seems to exist between human society and ecosystems.

As the first Chinese recipient of the Right Livelihood Award, widely known as the Alternative Nobel Prize, Huang Ming commented on the lagging development of the energy conservation and environmental protection sector: “From the perspective of sustainable human development, energy conservation and environmental protection ought to have become our primary lifestyle and fashion trend. But people always haggle over petty gains in this regard, fixated on questions like how much profit they can make and how long it will take to recoup investment costs — this is abnormal. If we craved new energy and green eco-friendly products with the same enthusiasm we have for cars and smartphones, our lives would be completely transformed.”

Burdened by large populations and low economic and technological capacity, developing countries are far more prone to environmental crises than developed economies. In recent decades, developed nations have launched numerous aid programs for the Global South, which on the surface alleviate poverty in certain regions, yet in effect lead to pollution transfer. Rapid industrialization has inflicted severe ecological damage on developing countries. Many environmental projects suffer from inadequate technology, resulting in incomplete pollution treatment and triggering massive environmental repercussions in the long run. Huang Ming recounted what he witnessed firsthand to the reporter from International Financing: “I recently visited Dhaka in Bangladesh, as well as Mumbai and New Delhi in India. Every time the plane descended, all rivers, lakes and ponds visible from above were pitch black. This reminded me of China in the early days of reform and opening-up more than 30 years ago, when township enterprises discharged pollutants blindly out of ignorance; smoke billowed from every village, and clear mountains and limpid waters vanished.” Huang Ming stated that access to a sustainable lifestyle is a legitimate right for all people. Citizens of developing nations yearn to live comfortable, decent lives just like those in developed countries. However, his field investigations revealed that many developing regions are ill-prepared in multiple respects: local residents lack environmental awareness, and some even hold the misconception that a clean area signals underdevelopment.

When asked how developing countries can resolve environmental woes, Huang Ming told the reporter: “Although the United States frequently criticizes China’s pollution, China’s environmental efforts have set an exemplary model for other developing nations. We are not only aware of the ecological crisis but also taking tangible action. All mankind sails on the same vessel. Energy conservation and emission reduction concern every single one of us; instead of blaming one another, we should focus on solutions.” As early as 2010, he put forward the Micro-Emission Earth Strategy and has actively promoted its implementation. Based on inspections across dozens of developed and developing countries, he believes low-carbon concepts work well for advanced economies yet carry limitations for most emerging nations, as low carbon alone is an incomplete solution. “Developing countries must tackle low-carbon goals, but more importantly, slash pollutant discharges. This carries profound significance not only for China but all developing economies, representing a viable pathway for sustainable development.”

The Environmental Industry Depends on Markets, Not Government Support

While people clearly witness the harms of pollution, they instinctively regard environmental governance as the government’s sole responsibility, to be resolved solely through policies and institutional mechanisms. This mindset prevails among ordinary citizens and enterprise owners alike, as if energy conservation and pollution control bear little relevance to individuals or businesses. Environmental protection has failed to become a daily habit for most people, and polluting enterprises treat it as a hot potato to avoid at all costs.

During the interview, Huang Ming told the reporter: “There are eight words I most want to emphasize: Global Misconceptions, Set Things Right.” He elaborated: “Publicity on energy conservation and environmental protection is not insufficient — it is excessive and overhyped! Successive UN Climate Change Conferences and other climate forums have, to some extent, placed full ownership of environmental action on governments and organizations, excluding public participation. Paradoxically, more hype breeds public resentment and over-reliance on official intervention. Take the solar industry for instance: everyone expects the state to drive its growth. This defies market rules. Government policy support may seem to aid enterprises, yet it ultimately harms them. Both authorities and consumers should treat solar products just like ordinary consumer goods — that is the genuine way to boost the solar sector.”

Huang Ming’s forthright remarks are well-grounded. From the late 1970s to the early 1980s, renewable energy research and development boomed in the U.S. and across the globe under the new energy policies of President Jimmy Carter. The rollout of supportive policies fueled the rapid rise of the solar industry, with solar firms and specialists universally believing the sector relied on government backing. After Carter left office, all related policies were scrapped; even the solar water heaters installed on the White House roof were removed, and America’s solar industry stagnated without state incentives.

A parallel situation unfolded in China. When the 2008 global financial crisis hit, the Chinese government launched the Home Appliances to the Countryside policy to boost domestic demand, which included solar water heaters. The solar sector surged under this policy, with nearly 280 production licenses issued at the peak. Yet once the rural stimulus policy expired, the industry plummeted: two to three hundred enterprises collapsed each month. Out of over 5,000 solar manufacturers at the height of the boom, very few remain operating retail businesses today. During the annual Two Sessions, Huang Ming, as a National People’s Congress deputy, repeatedly submitted policy proposals warning that without mandatory safety standards and guaranteed after-sales service, the rural solar subsidy program would flood countryside markets with counterfeit and shoddy products, turning a policy meant to benefit farmers into one that harms them — and his prediction came true. While Home Appliances to the Countryside brought fleeting prosperity to solar water heater makers, it also spawned market distortions. Unscrupulous practices by small and medium solar firms threw the industry into chaos, triggering a prolonged downturn in the solar market.

Huang Ming stated gravely: “Waiting for government policy support has become a mental poison for enterprises. When subsidies arrive, firms rush into the sector blindly; once support dries up, they grind all operations to a halt. This is not a sustainable development model. Any industry sustained entirely by state subsidies is doomed to rise and fall with policy shifts. I firmly believe only market forces can deliver sound industrial growth.”

Product Quality Is the Bottom Line and Lifeline

Most Chinese solar water heater manufacturers are private and township enterprises. A period of reckless overexpansion allowed numerous unqualified, shoddy producers to flood the market. To cut costs, some companies substitute inferior materials for core components and install flimsy support brackets. Defective products frequently trigger explosions and falling equipment injuries, eroding consumer confidence in solar water heater quality.

In recent years, multiple local governments have mandated solar water heater installation for new buildings. However, many real estate developers opt for ultra-low-cost substandard solar equipment and cut corners on installation standards. As a result, most residential solar heating systems malfunction within roughly one year of property handover; many stop working entirely after two to three years, turning showcase green projects into mere cosmetic facades. Worse still, some developers sign prearranged deals with manufacturers to dismantle solar water heaters immediately after project inspection and acceptance.

Such malpractice fostered widespread consumer distrust of solar products, cementing stereotypes that solar equipment is impractical, low-grade, fails to deliver hot water in winter, and lacks reliable after-sales service. Starting in 2012, Huang Ming exposed unspoken industry malpractices to the public, sparking heated debate across the sector and society. Within the industry, he went from revered “Godfather of the Solar Industry” to a perceived “traitor.” Huang Ming responded: “To uphold quality standards, our production costs far exceed competitors’, putting us at a price disadvantage and costing us countless orders. Yet we cannot compromise quality to cater to superficial showcase projects, as that would jeopardize customer safety. One must stay true to their original aspiration and never betray their core values.”

Unspoken malpractices exist in nearly every industry, even if hidden from public view; turning a blind eye only amounts to self-deception. Product quality embodies an enterprise’s moral conscience and underpins the reputation of both individual firms and the entire industry — it is both the non-negotiable bottom line and the lifeline of survival. Some accused Huang Ming of tarnishing the industry’s image, yet exposing hidden industrial malpractice actually safeguards the sector’s long-term credibility. Thanks to uncompromising quality control, more clients have actively sought out Himin’s solar products in recent years. Gresham’s Law, whereby bad money drives out good, prevails in the market, yet this never justifies manufacturers becoming “bad money.” Once consumers grasp the full truth, they will ultimately choose high-quality products, for the market naturally rewards survival of the fittest.

New Growth Opportunities Await the Energy Conservation and Environmental Protection Industry

Having witnessed the solar industry’s rise, boom and bust, Huang Ming remains convinced this sunrise sector is far from reaching its full potential. After the ongoing industrial reshuffle, consumer misunderstandings about solar energy will gradually fade, marking a fresh starting point for the whole sector. He told the reporter from International Financing: “The Home Appliances to the Countryside solar bonanza was actually a major disaster for consumers and quality-focused manufacturers like us. Customers lost faith in the entire industry after using low-quality defective products, yet we had to hold fast to quality standards and weather the storm of lost orders. Our sales began to recover in 2014. Our current marketing strategy centers on community outreach to educate consumers, identify latent demand, and demonstrate that solar water heaters are not only functional but also safer, superior alternatives to electric and gas water heaters.”

Mirroring its early nationwide solar science popularization tour, Himin now leverages its corporate influence to launch hundreds of city-wide community campaigns promoting household safety, green micro-emission lifestyles and solar literacy. Through popular science outreach, the company aims to rebuild public trust and boost environmental awareness. Huang Ming foresees vast untapped commercial potential across the energy conservation and environmental protection industry, using rooftop solar water heaters as an example: Yunnan Province alone boasts over 100,000 solar heating projects, nearly 90% of which are non-functional, while most remaining units suffer constant breakdowns. Replacing just 10% of these systems annually translates to over 10,000 new projects within Yunnan alone.

Today, numerous urban residents voluntarily opt for energy-saving and eco-friendly products, and the rural solar market is gradually recovering after years of disorder. We believe that in the near future, as living standards rise and environmental consciousness takes root, energy conservation and pollution control will no longer rely on government promotion alone, but become voluntary action for every citizen and socially responsible enterprise — ushering in a new era of growth for the entire energy conservation and environmental protection industry.