With its industrial strength, China has been undercutting manufacturers around the world for the past two decades. The pattern is repeating in the solar industry, raising the threat of a trade war between the Asian giant and Germany and the U.S.–the other two major solar-producing countries.
Shares of German solar companies are down significantly and solar margins have been slashed as the pendulum swings from strong demand to strong supply.
Renewable energy advocates and environmentalists have been waiting for solar prices to drop for years, but this could be undone if trade barriers are put in place to protect much-desired green manufacturing jobs in the western countries.
Read Reuters coverage at the link below.