US Tariffs and Domestic Glut Push China's Solar Firms Toward Bankruptcy
Key Insights
One-third of China's 121 listed solar producers are in the red, with over 50 supply chain firms filing for bankruptcy this year.
Prices across the solar panel supply chain dropped 60-80% in 2024, causing losses of $40 billion in the PV sector alone.
Major solar firms like Jinko Solar and Longi Green Technology saw stock declines of up to 80% since 2022.
The industry faces a dual crisis: domestic oversupply and US tariffs restricting access to key export markets.
The mood at this year's SNEC PV Conference in Shanghai was somber, reflecting the dire state of China's solar industry. With major players like Longi Green Technology and Tongwei absent, the event underscored the financial strain on manufacturers. The sector, once a pillar of China's economic growth alongside electric vehicles and lithium batteries, is grappling with plummeting prices and a supply glut. Prices in the solar supply chain fell by 60-80% in 2024, pushing 39 of China's 121 listed solar firms into losses totaling $40 billion, according to Trina Solar's chairman Gao Jifan. Including other business lines, losses reached $60 billion.
Yang Liyou, general manager of Jinneng Clean Energy Technology, voiced industry concerns: "Everyone is questioning how deep and prolonged this downturn will be. It has not eased. In fact, it’s become deeper and longer than we anticipated." The downturn is evident in stock performances, with Jinko Solar's shares down nearly 30% in New York this year and 60% from their 2022 peak. Competitors like JA Solar, Tongwei, and Trina Solar have fared no better, with declines of up to 80%.
The crisis stems from a dual challenge: a domestic price war fueled by oversupply and US tariffs limiting exports. The tariffs have exacerbated financial pressures, forcing firms to scale back operations or file for bankruptcy. The industry's struggles highlight the fragility of global supply chains and the impact of trade policies on renewable energy sectors.