China’s Himin Solar chief confronts local government over debt – Financial Times (Paywall)
What happened: Huang Ming, founder of Himin Solar, one of China’s largest solar water-heating companies, is confronting local governments for the latter’s 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 it’s important: Regardless of business model and key technology, tech companies’ 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.