After the rapid development in recent years, China's solar photovoltaic industry has formed a corporate group as a leader in the production of photovoltaic solar cells, to further improve the photovoltaic industry scale, industry concentration and market share.

Since 2007, China has become the largest manufacturing base for global PV solar charge controller modules and batteries accounted for 50% of global production capacity. Lagging behind the development of the domestic photovoltaic applications, even though China is the world's largest photovoltaic cell manufacturing base, but heavily dependent on exports of enterprise sales.

The debt crisis of the European Photovoltaic market to shrink further. With the development of the debt crisis in Europe, the previously high installed capacity and high subsidies to bring greater financial pressure, the European debt crisis forced European countries to take deficit reduction and austerity policies, Germany, Italy and other PV States to re-adjust to the new energy subsidy policies. At the same time, European and American banks tightening credit policies of the PV power plant also makes photovoltaic industry further into a trough.

Europe and the United States "double reverse" trade policies exacerbated the grim situation of the industry. In October 2011, the United States launched the "double reverse" investigation of photovoltaic products in China, in November 2012, the United States of photovoltaic products in China "double reverse" the final ruling landing, the U.S. will impose anti-dumping against Chinese solar cell production and export enterprise, anti- subsidies to tariffs.

In September 2012, the EU decided that the anti-dumping investigation of Chinese PV products; November, the EU announced to initiate anti-subsidy investigation of solar panels imported from China and its major components. India also recently proposed trade protection policy. Trade protection policy makes photovoltaic industry situation is exacerbated.

In December 2005, the National Development and Reform Commission issued the "industry restructuring Catalog, to encourage the development of clean energy, including solar power generation equipment manufacturing industry. Since then, China's PV industry has entered a period of explosive growth. Of crystalline silicon material, silicon wafers, solar panel, photovoltaic modules, photovoltaic power generation systems such as photovoltaic industry chain firm size and the number is growing rapidly.

To 2011, five years after 2007, China's solar PV output ranks first in the global continuous growth doubled. In late 2011, the Chinese PV module production capacity has reached a 35-40GW, accounted for nearly 80% of the global production. Closing the door to the Chinese PV companies in foreign markets, the domestic photovoltaic enterprises producing serious excess, can only seize the market competing price.

Bring greater pressure due to overcapacity, falling commodity prices, and a significant decline in corporate profits, industry-wide most of the business at a loss. The photovoltaic industry giant Suntech and LDK troubled. Suntech NYSE landing as the first Chinese enterprise, has been considered the first unit of the Chinese PV. The face of the crisis in the industry, Suntech shares have long been lower than $ 1, facing the risk of delisting.

In operation, the company can not be liquidated bank loans to maturity, vendor payment collection, corporate capital chain tension. Loss of $ 137 million in the third quarter of 2012, another industry giant LDK, which is the company for six consecutive quarterly losses, during the year 2012 the company about $ 2 billion in debt maturity Zevi liabilities totaling nearly 25 billion yuan , in order to ease the debt crisis, after Zevi many times through the sale of photovoltaic power plants held repossessed.