Beginning in 2008, under the impact of the global financial crisis, the European Union had to reduce its policy support, and the European market, which occupied the main source of income for China's leading photovoltaic companies, began to shrink. With the weakening of demand, the price of polysilicon began to plummet in 2009, from its peak of US$400/kg to US$40/kg in less than a year.
Misfortunes never come singly. In 2011, the United States took the lead in launching a "double reverse" investigation of Chinese photovoltaic companies. On May 17, 2012, the US Department of Commerce announced its preliminary anti-dumping decision. Yingli, Wuxi Suntech, and Trina Solar will be levied anti-dumping duties of 31.18%, 31.22%, and 31.14%, respectively. The tax rate for non-sponsored Chinese photovoltaic companies 249.96%. Subsequently, the European Union also issued a "dual reverse" investigation on Chinese photovoltaic companies.
In 2012, China's photovoltaic industry ushered in the darkest moment.
Under strong winds and showers, the giant ship of Suntech was in danger. Under the slump of silicon material prices, Suntech's long-term association has become a nightmare. In 2011, Suntech canceled the polysilicon supply contract signed with MEMC and paid a full US$212 million.
In the first half of 2012, Suntech’s decline has been out of control, with an average daily loss of 10 million yuan. The stock price has dropped from a peak of 90 US dollars all the way to below 1 US dollars. Shi Zhengrong’s net worth has quickly returned from 2.312 billion US dollars to zero. In August 2012, Suntech wanted to sell its overseas assets GSF fund to ease funding pressure. However, an external financial investigation found that a counter-guarantee asset of 560 million euros provided by Suntech to China Development Bank did not exist. The GSF counter-guarantee scam became the last straw that hit Suntech. On March 20, 2013, Wuxi Suntech was ruled for bankruptcy and reorganization by the Wuxi Intermediate People's Court, and a generation of photovoltaic kings left the scene sadly.
It is rumored that on the eve of Suntech’s bankruptcy in September 2012, the Wuxi municipal government had expressed to Shi Zhengrong that it was willing to inject capital to rescue Suntech, but he needed his personal assets as a guarantee. However, Shi Zhengrong chose to sit on the sidelines, "I have so many employees, if you don't save me, I will close the door." Of course, Shi Zhengrong later explained that he had resigned from Suntech at that time and there was no reason to guarantee his property to save Suntech.
Yingli also suffered a huge impact, and its stock price quickly fell from a high of 415 yuan to 25 yuan. But Miao Liansheng didn't want to leave like Shi Zhengrong, he even put all his wealth on, and continued to transfuse Yingli's life. Under the rapid change of the industry’s business climate, Yingli faced debt defaults of 1 billion and 1.4 billion in 2015 and 2016 respectively. In a later recalled article, the Vietnam War veteran referred to the difficulties Yingli encountered in recent years as " "It's so difficult", "It's really hard to get by." However, under such difficulties, Lao Miao is still unwilling to relieve financial pressure through a large number of layoffs. In July 2016, Miao Liansheng resigned as Chairman of Yingli Group. After retiring, he moved the living room to a small building in the deepest part of the factory. He still reads a lot every day to obtain information from the outside world and continues to keep track of Yingli's pulse.
Since 2009, Peng Xiaofeng's original plan to recover the cost of silicon material production capacity in one year has become a heavy burden. In 2012, due to poor product sales and a round of major investment errors exceeding 10 billion yuan, LDK's total debt climbed to 27 billion yuan, and the debt ratio exceeded 100%. The company began to lay off employees and suppliers went to collect debts. In November 2012, to calm the situation, Peng Xiaofeng was forced to resign and pushed LDK CEO Tong Xingxue to the forefront, and the local government took over the aftermath. The local government maintained it for two years and couldn't solve the debt problem, so it had to operate LDK bankruptcy and reorganization.
This photovoltaic company with revenue of more than 20 billion in 2010, the world's largest shipments, and the strongest profitability, suffered the most under the drastic changes in the industry. Afterward, Peng Xiaofeng said: "If you want to live the best life, you will definitely encounter the strongest harm. The world is fair. If you want the best, you will definitely suffer the most."