Financial Times: Chinese solar companies do a good job is not easy to want to die harder

China, a senior energy official said, like "to maintain the life of the patient", the solar panel industry in the country will have to withstand the intense integration and closure of to get rid of excess capacity crisis.

The desperate evaluation highlighted, in the context of global demand slowdown and battery plate prices fell 30% in past year, as the world's largest manufacturer of solar panels, China was the impact of oversupply. Worldwide solar companies have closed their doors, because they lost to the Chinese enterprises in the price war, while the latter is also working to survive.

China's National Development and Reform Commission said Li Junfeng, deputy director of the Energy Research Institute, renewable, at least half of the world's solar panel production capacity will have to go through "the fierce market competition and the brutal elimination" close off.

Li Junfeng, in an interview with the British "Financial Times" interview, said: "If you do not eliminate a lot of capacity, there is no way to resolve the crisis."

Although the manufacturers of solar cell has been the United States to impose anti-dumping duties and countervailing duties, and the EU is similar tariffs poll, said Li Junfeng, trade tariffs is just the camel's last straw ". According to him, the real culprit is the rapid expansion of China's credit-fueled solar capacity, leading to global production capacity of about 100GW, while global demand is only 30-50GW.

Suffered due to the oversupply in global demand growth slows, the large Chinese solar companies such as Suntech, Trina Solar and Yingli Green Energy has cut production, and strive to maintain profitability. , The world's largest manufacturer of solar panels, Suntech recently received a Nasdaq delisting warning, at the end of September, the local Wuxi municipal government debt guarantees. In July of this year, a Chinese focus on solar company LDK Solar's polysilicon production from Xinyu City won a $ 80 million bailout.

As China's most influential one of the renewable energy policy makers, said Li Junfeng, the central government will not support the difficult situation of domestic solar panels enterprises, these enterprises need "is responsible for their own problems.

The recent local government relief act solar companies described as a "suicide", will only exacerbate the problem of excess production capacity. "If other local governments to follow the rescue policy in Xinyu City, Wuxi City, which is tantamount to drinking poison to quench thirst, will only accelerate their death." Most Chinese solar companies are private enterprises, local governments often holds a minority local businesses stake.

Said Li Junfeng, Chinese solar charge controller industry needs at least one to two years to complete the natural integration, due to the lack of clear bankruptcy law, the time may be longer. "Compared with the European Union's rapid bankruptcy system, which will be a slow and painful process of Chinese enterprises want to finally; However, death is even more difficult."