China-based makers' solar product shipments to Europe have been falling due to the ongoing trade dispute, but their shipments to the US, Japan and the domestic market have been rising. Due to orders related to China's Golden Sun Demonstration Projects, China-based solar module makers such as Yingli Solar, Trina Solar, and Canadian Solar have seen percentages of sales from the domestic market increase significantly. Yingli was the global number one in terms of solar module shipments in the fourth quarter of 2012. The firm saw shipments in 2012 reach 2.3GW and expects shipments in the first quarter of 2013 to exceed 700MW.
China-based solar firms' financial conditions have raised an alarm after Wuxi Suntech entered insolvency. With falling prices and increasing trade barriers, losses for China-based firms have been growing. Digitimes Research has found that the total debt of Yingli Solar, Trina Solar, Canadian Solar and Jinko Solar in the fourth quarter reached US$8.8 billion. The total debt of LDK and Suntech in the first half of 2012 exceeded US$10 billion. Except for Trina Solar, each of the firms aforementioned has a debt ratio over 80%.
The China government has been eager to cushion the trade war's impact on the solar industry by increasing domestic demand. Although the Golden Sun Demonstration Project has successfully increased installations, the percentage of systems connected to grid is still low. In 2013, the China government plans to lower subsidies for large-size solar power generation plants and promote standalone solar PV systems. The government also plans to introduce strict entry requirements for the solar industry.