China’s Largest Corporations Plunge into Record Losses, Triggering Economic Fears

Three of China’s corporate titans have sounded a stark warning with projections of massive losses for the first half of 2025. Shockwaves are rippling through financial circles as solar and aviation leaders confront surging headwinds.

Tongwei and Longi Green Energy Technology, anchor players in the solar world, now expect multi-billion yuan losses. Alongside them, China Eastern Airlines signals further financial pain, fanning fears of deeper problems across critical sectors.

What are the deeper causes behind China's record-setting losses in 2025?

Tongwei projects a first-half net loss between 4.9 and 5.2 billion yuan, while Longi Green’s forecasted losses range from 2.4 to 2.8 billion yuan. Industry insiders point squarely to severe oversupply and relentless price wars in the solar sector as drivers behind this financial rout.

Consistent margin squeezes due to oversupply have forced big manufacturers to sell at extremely low prices in order to remain competitive. The losses are mounting at a time when demand uncertainty and rising inventory threaten further turbulence.

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Tongwei reported its first annual loss in 23 years in 2023, and now faces what its leadership describes as the most challenging period in the company’s 42-year history.

Will global markets be rocked as Chinese industry giants falter?

Solar is not the only source of pain. State-owned China Eastern Airlines forecasts H1 losses ranging from 1.2 to 1.6 billion yuan, perpetuating a negative trend that culminated in a full-year net loss of 4.798 billion yuan in 2024.

Air passenger traffic, once expected to snap back after the pandemic, remains uneven, challenged by competitive routes and rising operational costs. Lower-than-expected revenue means Chinese aviation isn’t rebounding fast enough to offset its mounting debts.

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The solar sector faces ongoing turmoil as oversupply crushes profit margins

Tongwei, a pillar in both polysilicon and photovoltaic cell manufacturing, and Longi Green, a world-leading module maker, now epitomize the struggle for survival in China’s energy revolution.

The sharp decline in solar component prices isn’t only squeezing profits; it’s reshaping global supply chains. Experts warn that relentless price competition may lead to business failures and further job cuts unless balance returns to the market soon.

Aviation recovery stumbles amid enduring operational pressures

China Eastern’s troubles echo sector-wide woes: slow international recovery, increased competition, and legacy cost burdens. The airline’s multi-billion yuan losses since 2024 underscore the scale of the challenge and the uncertainty facing China’s travel recovery.

Fundamentally, these unprecedented losses are raising pressing concerns about the resilience of China's economic growth, its capacity to endure sectoral shocks, and the possible influence on the global economy.

As the world’s second-largest economy wades through these stormy waters, all eyes are now on whether policymakers and corporate leaders can steer a course toward stability or if even bolder measures are on the horizon.