Similarly,
Why chinese solar panel companies:
The situation is tense in China. In addition, Large Chinese solar sector companies dismissed tens of thousands of employees in last year. However, This wave of job cuts results directly from the overcapacity of production. For example, a problem to which the country is currently trying to remedy.
After the decline of the real estate sector in China, the government has reoriented public aid to sectors which it has identified as more promising: photovoltaic solar, electric cars and batteries. However, These industries were supposed to become the engines of the new Chinese economic growth.
But solar. Similarly, one of the sectors on which the country has bet why chinese solar panel companies everything, is going through a period of crisis today. Moreover, And apparently, the difficulties did not spare the giants of the sector, which had to carry out massage in mass.
A third of the employees were dismissed – Why chinese solar panel companies
An analysis carried out by Reuters mentions five large Chinese solar companies. Furthermore, Longi Green. Trina Solar, Jinko Solar, JA Solar, and Tongwei would have, according to the report, dismissed a total of 87,000 employees in 2024. This is around 31 % of their workforce during the year. Among these brands, only longi would have admitted having returned 5 % of its employees.
These layoffs have been the direct consequence of the price war that has been raging in China in recent years. Under the effect of this fierce competition, the prices of solar modules collapsed, a trend obviously felt beyond Chinese borders. Result: the solar industry shows losses estimated at $ why chinese solar panel companies 40 billion. up to 60 billion if we include other activities of companies in the sector.
Overcapacity, Achilles heel of Chinese industry?
The fall in prices is explained above all by the production overcapacity of Chinese industry. Between 2020 and 2023, new factories have multiplied across the country. This led to an abundance of supply, against a sluggish demand. Today, global production of solar panels is approximately twice as demand, and China provides the vast majority.
The situation is also aggravated by the drastic increase in customs tariffs imposed by Trump protectionist measures. The American market has practically closed to Chinese products.
Solutions to relaunch the sector
« The overcapacity problem is so deep that we cannot see the bottom“Summarizes. a professional in the sector questioned byReuters. China then tries to remedy the situation.
In February, the National Development and Reform Commission, the State planning organization, prohibited any why chinese solar panel companies new production capacity. A measure that seems to have been ignored, since several companies continue to add manufacturing lines.
In the province of Anhui. which concentrates a large share of factories, local authorities have called to reduce capacity by stopping the construction of new sites. Existing lines running less than 30 % of their potential should also be stopped.
At the same time, the major players in the sector plan to create an organization that would coordinate production and prices in order to stabilize the market. A fund of around 50 billion yuan (nearly 5.9 billion euros) is also planned to buy and close ineffective factories in order to reduce the excess offer.
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