The Diplomat
China’s photo-voltaic (PV) industry, better known as the
“solar industry”, is in the middle of a serious crisis. The issue is
particularly fascinating since it essentially serves as a microcosm for
many of the troubles afflicting China’s economy as a whole, including
government encouraged over-investment, an astounding run up of debt,
government support of value-destroying firms, resulting trade frictions,
and the tension between central and local government goals.
Nearly all the “big names” of the industry, including companies such
as LDK Solar, Yingli Solar (which sports fans will recognize from its
sponsorship at recent international soccer events) and Suntech Power
Holdings are all facing the possibility of bankruptcy, consolidation,
or both following a remarkable few years in China’s solar industry.
