Solar Giants Bleed Billions as Price War Rages

China's leading solar panel manufacturers are facing staggering losses, exceeding $5 billion combined, despite a recent industry pact to stop selling below cost. The crisis stems from a massive global oversupply. Chinese factories, which dominate the world's solar equipment production, built too much capacity. To compete, companies slashed prices drastically in a fierce "price war," severely damaging profits. In June, the industry's biggest players, including Longi Green Energy and Tongwei, signed a pledge to halt below-cost sales. However, the agreement has failed to stop the financial collapse. Plummeting prices for polysilicon, a key material, have also wiped out profits for major suppliers. Analysts say the losses reveal the pact's weakness. With too many panels and intense competition, companies are still forced to cut prices to survive, ignoring the non-binding agreement. The situation threatens to eliminate weaker firms and reshape the global industry.