Chinaโs Himin Solar chief confronts local government over debt โ Financial Times (Paywall)
What happened: Huang Ming, founder of Himin Solar, one of Chinaโs largest solar water-heating companies, is confronting local governments for the latterโs failure in compensating a promised $440 million. Insiders believe that the tightening liquidity was forcing companies to call in debts, even from local governments, to survive. Huang also acknowledges that market and policy shift in the solar energy industry has reduced profit margin.
Why itโs important: Regardless of business model and key technology, tech companiesโ life and death in China at the moment is tightly tied to macro economic uncertainty. The seemingly close business-administration relationship may see more turbulence as enterprises sink into deeper debt and encounter more business operation issues.
