China to overhaul struggling solar panel industry
BEIJING (AP) - China's government says it will overhaul its struggling solar panel industry by encouraging mergers among producers that are suffering huge losses due to excess production capacity and price-cutting wars.
A Cabinet statement late on Wednesday said Beijing will encourage mergers and acquisitions and will block local governments from supporting domestic solar panel manufacturers.
The communist government has supported solar power as a promising industry but manufacturers have suffered huge losses after excess production capacity forced them to cut prices.
Beijing's support for the industry has prompted complaints by the United States and Europe that it is improperly subsidising exports and hurting foreign competitors.