The predicament of the domestic photovoltaic industry

Recent news of the EU and US sanctions on China's photovoltaic industry has cropped up, and the Chinese PV industry, which has seen a lot of wind and rain, is going through some hardships. Xiao Bian deeply regrets this. How could such a sunrise industry in photovoltaic industry become a sunset industry in China? Why is this? It is actually two words, the government. Local governments at all levels have begun to support the photovoltaic industry, and all companies have begun to expand production. There is a market for photovoltaics. But it cannot accommodate so many ambitious Chinese companies and the Chinese local governments behind them.

Xiao Bian thought of a small joke. A Jewish man discovered an oil field and then the Jews began to exploit it. The second Jewish opened a restaurant... The Chinese were the first to produce oil, the second to produce oil, and the third to produce oil... The result was a continuous price cut. Finally, the entire industry lost money. Most businesses went bankrupt and a few survived. Down companies merge with other companies.

However, this is still a good thing. The current disadvantages of the photovoltaic industry lie in the fact that companies cannot survive, the government continues to support, and companies continue to suffer losses. The government does not want companies to close down. On the one hand, GDP is a big problem. The other big problem is that bank loans have become accounts receivable. This problem is terrible, like I now owe you 1,000 yuan. Then I ask you to borrow 10 yuan. Can you borrow it or not? I may not be able to exchange your money if I borrowed it. However, I will not be able to borrow your 1,000 yuan because I have closed down. Your assets are reduced by 1,000, profits are gone, and bonuses are gone. And if you borrowed it, profits are there, and bonuses are still there. Why not? Well, another agent is in a difficult situation. Of course, the agent has also been kidnapped by the company.

Xiao Bian believes that: China's photovoltaic industry development and foreign market sanctions, there is no much relationship, the key lies in a reasonable guidance of the government. This guide is not blind to them. Some enterprises are black holes and cannot be saved. The government's blindness to the company will only pull the entire industry into the abyss. The government's guidance should be to help companies with core competencies become bigger and stronger. Doing icing on the cake does not make it in the snow. At the same time, the government must not arrange marriages. The merger of enterprises must be market-based. Only after a wave of PV companies collapsed and merged, will China's competitive PV giants be born. China's photovoltaic industry has hope.