Major Chinese Solar Manufacturers’ Revenues Plummet

Overview

The Chinese solar industry has been hit hard by a combination of factors, including the US-China trade war, a slowdown in global demand for solar panels, and a decline in government subsidies. As a result, the revenues of major Chinese solar manufacturers have plummeted in recent years.

The decline in revenues has been particularly pronounced among the largest Chinese solar manufacturers, such as JinkoSolar, Trina Solar, and Canadian Solar. In 2019, JinkoSolar's revenue fell by 19%, Trina Solar's revenue fell by 22%, and Canadian Solar's revenue fell by 25%.

Causes

The decline in revenues among Chinese solar manufacturers is due to a number of factors, including:

• The US-China trade war: The US-China trade war has imposed tariffs on solar panels imported from China, making them more expensive for US customers. This has led to a decline in demand for Chinese solar panels in the US market.
• A slowdown in global demand for solar panels: The global demand for solar panels has slowed down in recent years due to a number of factors, including the COVID-19 pandemic and the rising cost of solar panels.
• A decline in government subsidies: The Chinese government has reduced subsidies for solar panels in recent years, making it more difficult for Chinese solar manufacturers to compete with their international rivals.

Impact

The decline in revenues among Chinese solar manufacturers has had a number of negative consequences, including:

• Job losses: The decline in revenues has led to job losses in the Chinese solar industry. In 2019, JinkoSolar laid off 1,000 employees, Trina Solar laid off 800 employees, and Canadian Solar laid off 700 employees.
• Bankruptcies: The decline in revenues has also led to bankruptcies among Chinese solar manufacturers. In 2019, Yingli Solar, one of the largest Chinese solar manufacturers, filed for bankruptcy.
• A decline in investment: The decline in revenues has led to a decline in investment in the Chinese solar industry. In 2019, investment in the Chinese solar industry fell by 20%.

Conclusion

The decline in revenues among Chinese solar manufacturers is a major concern for the Chinese government. The government is taking steps to address the issue, but it is unclear whether these steps will be enough to reverse the decline.