Chinas solar giants quietly shed a third of their workforces last year

Since 2024, more than 40 solar companies have listed, went bankrupt or sold

Analysts, companies trying to reduce the costs of business losses occurred.

Analysts and Industry Inside, more interruptions are needed for industrial capacity.

Beijing points to intervention to reduce capacity, balancing prices

Beijing,-China’s largest solar firms, largest about one-third of the labor force last year, as one of the industries provided by Beijing, led to economic growth grappling with falling prices and steep losses.

Since business cuts are struggling with excessive capacity and warm demand, it shows the pain of vicious price wars between Chinese industries, including sun and electric vehicles. The Earth produces twice as much solar panels than it is used every year and most of them are produced in China.

Reuters, according to the review of employment figures in the public files, the league Green Energy, Trina Solar, Jinko Solar, Ja Solar and Tongwei, collectively, approximately 87,000 staff or labor force last year threw an average.

Analysts say that the loss of work that has not been reported before is a mixture of dismissal and wear due to payment cuts and hours as they try to eliminate the losses of companies. Beijing is politically sensitive to dismissal in China, where employment sees employment as the key to social stability. Except for a 5% deduction adopted by the league last year, none of the above mentioned companies have announced any business deduction or responded to questions from Reuters.

“Industry has been faced with a decline since the end of Industry 2023,” Morningstar analyst Cheng Wang said. “It actually worsened in 2024. It seems to worse in 2025.”

According to a presentation by the photovoltaic industry association in July, more than 40 solar companies have bankrupt or purchased or purchased since 2024. China’s solar energy manufacturers built new factories in a fire field between 2020 and 2023, because the state resources directed to what it calls the “new three” growth industry from the sinking property industry: solar panels, electric cars and batteries.

This building craze led to a ruthless price war that worsened by US tariffs against falling prices and many Chinese factories in Southeast Asia. The industry lost 60 billion dollars last year.

Analysts say that this year is unclear whether business cuts continue, Beijing, plans to intervene to reduce capacity and policing prices increased by about 70% in July, the solar panel prices increased more modestly, he says.

The great polysilicon producer GCL to Reuters on Thursday, a senior producers

Prices and supply control. The group also sets up 50 billion Yuan vehicles to buy and close one -third of the industry’s lower quality production capacity. In early July, President Xi Jinping wanted to end the “irregular price competition” and three days later, the Ministry of Industry promised to calm the price battles and retire outdated production capacity during a meeting with the Sun Industry executives.

A source with direct information on the subject, even if Beijing said, was determined to focus on the issue before the end of the existing five -year plan this year. According to two industry sources that refused to be defined due to the sensitivity of the issue, the authorities in the Anhui province of East China, a production center, said that in June, solar company executives to stop adding new production and production lines operating below 30%.

A board member in a solar company in the state said that the new capacity requires verbal approval from the strong state planner from the strong state planner this year. Since the discussions were special, they wanted their companies to hide their names.

However, analysts say that many state government will be reluctant to be forced to excessive capacity. These authorities are scored by business and economic growth and hate to see that local champions have been sacrificed to meet the target of another. Trina Solar’s president said that new projects started this year despite the call of an industrial conference in June, despite the call of NDRC to stop.

Foot drag reflects the scale of the necessary bag. Jeferveries Analyst Alan Lau predicted that at least 20-30% of the production capacity should be eliminated to return to profitability of companies.

“There is too much capacity in China, such as steel in China, but you do not see any industry with industrial loss of cash for a year and a half in the past.” He said.

Losses at the company level, although solar is only about tenth, another crisis stroke sector is on the same scale as the real estate, he said.

“This is quite unusual and extremely abnormal.”

This article was created from an automatic news agency feeding without changing the text.