Longi solar panel giant cuts a third of its workforce
It is an ordinary business news story for capitalists: the world's
largest maker of solar panels cuts about 30% of its workforce. The world
market for panels is in a slump.
But the facts of the matter do belie the Pollyanna story peddled by fans
of China's alleged "socialist market economy."
* Forty percent of Longi sales are outside China. It is a success
story of monopoly capital expansion. It also means the company is
not a socialist enterprise doing what China needs, period. It is
subject to the winds that blow through world energy markets. Longi
is on the front line of the conflicting economic interests of
Chinese, western European, and U.S. imperialism.
* The company is not owned by the central government. It did start as
a joint venture with the city of Wuxi, and at least one city
official moved over to become a Longi executive. Today, two men
personally own 19% of the shares. Are solar panels part of the
"commanding heights" today and tomorrow, like oil companies? The
phrase "commanding heights" is used to put a gloss on market
socialism. It is meaningless in the Chinese context today.
* Longi did benefit from state credit when it needed it. The state
funded research, just as the U.S. government did for hard drives,
COVID vaccines, etc. China uses a high-powered version of the same
industrial policy tools used by Japan and other capitalist countries.
As for those 20,000 workers laid off ... China has only a barebones
unemployment compensation system. You're on your own to sell your labor
power to some other capitalist.
____________
China’s Longi looks to slash costs as renewable energy sector faces
tough headwinds from inflation
Alex Lawson, Guardian, 18 Mar 2024
The world’s largest solar manufacturer has slashed nearly a third of its
workforce. China’s Longi is to cut as much as 30% of its workforce, in
an acceleration of cost reductions that began late last year, Bloomberg
reported.
The company employed 80,000 at its peak last year. An internal function
allowing employees to see the total number of staff has reportedly been
disabled.
Longi manufacturers wafers – a component used in solar panels. The
company, based in Xi’an in central China, has been forced to suspend
investment plans while also cutting prices.
Before the job cuts, the company canceled free afternoon tea, cut
business trip budgets and informed staff that they must only print in
black and white unless they received permission, Bloomberg reported.
Longi’s Shanghai office has reportedly stopped offering free coffee.
Excerpted from
https://www.theguardian.com/environment/2024/mar/18/worlds-largest-solar-manufacturer-longi-china-cut-third-workforce
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