China Solar Giant Warns of Demand Whiplash after Rebate Rollback

China’s struggling solar sector faces fresh turbulence as the planned removal of a key export-tax rebate threatens to disrupt demand patterns, according to Longi Green Energy Technology Co.

The tax change — which is due to kick in from April 1 and is meant to promote industry consolidation — could leave manufacturers scrambling to ship orders ahead of the shift, followed by a sharp drop-off once the rebate is withdrawn, Vice President Zhang Haimeng said in an interview. To cope with the near-term rush, companies may ask staff to work overtime during the upcoming Chinese New Year holiday, Zhang said.