Trina Solar Against Violent Unfair Competition

As we all know, after more than 10 years of development, China's PV industry has become a global leader in terms of technology, quality, brand, and scale, and has become a typical representative of China's emerging strategic industries. However, China's PV industry has entered a difficult period since 2011.

2012 was a difficult year for the global photovoltaic industry. The superposition of multiple factors such as overcapacity, disorderly competition, trade protection, and financial crisis has caused the prices of photovoltaic modules to continue to fall at a rate of 10-15% per quarter. Most companies are under greater pressure and inventory increases. Accumulated receivables and losses continued. According to statistics, the total loss of China PV module companies in the first three quarters of 2012 reached 20 billion ***, and the sustainable development of the photovoltaic industry was seriously challenged.

The difficulties in the photovoltaic industry have caused the attention of the Central Government of China. The leaders of the State Council and various ministries and commissions of the State are intensively investigating the key PV regions and companies to understand the situation and listen to their opinions. On December 19, 2012, Premier Wen Jiabao presided over the executive meeting of the State Council to study and publish five policy measures to promote the healthy development of the photovoltaic industry, aiming at achieving the goal of re-establishing the industry through all parties.

Gao Jifan, chairman and chief executive officer of Trina Solar, said when talking about the spirit of the State Council meeting, he said, “We are greatly encouraged by the spirit of the State Council executive meeting and look forward to the fact that the entire industry can focus on the five policy measures. Product quality, emphasis on innovation, opposition to any form of vicious and unfair competition behaviors such as sales below cost, and opposition to trade protection and other actions that are not conducive to industrial development.”

Gao Jifan pointed out: "At present, the industry is generally losing money and facing difficulties. The more so, the more you cannot hold fire to save fire. Below-cost sales and neglect of quality and innovation not only fail to maintain the company's own development, but also affect the industry's true cost of photovoltaic products. Correct assessments have led to the deviation of the on-grid tariffs set by governments of various countries from a reasonable downward track, which has affected the reasonable investment returns of solar power plant projects and is extremely detrimental to the continued development of the entire industry. At the same time, individual companies hope to obtain temporary breathing space through trade protection. Nor can it provide a hematopoietic mechanism for the sustainable development of enterprises. To achieve sustainable industrial development, we must follow the principles of fair competition, reasonable competition, and free trade. First, policies must be continuous, and the on-grid price must be based on the true cost of photovoltaic products to support and Inspire industry innovation and continuous investment; Second, companies should be innovation-oriented, pay attention to product quality and power generation efficiency, and do not engage in vicious and unfair competition; Finally, the entire industry chain should reach an early realization of parity electricity through international division of labor and cooperation. Goal to Structural transformation into energy. "