Times are tough for Shi Zhengrong. The founder of Suntech, the world’s biggest solar panel manufacturer, was once one of the richest men in China. Now his empire is in shambles.

Suntech has cut 40 per cent of its solar panel production, seen its share price drop 60 per cent this year, and received a delisting warning from the New York Stock Exchange. With net debt of $1.6bn – the company’s gearing is more than 200 per cent – it recently received lending support from the city of Wuxi and a swathe of bonds due for repayment in March looms.

Suntech’s woes illustrate the broader transformation under way in China’s solar sector – the biggest producer of solar panels in the world. After years of breakneck expansion that flooded the world with ever-cheaper panels, China’s highly leveraged solar panel producers are now facing production cuts, layoffs, and in some cases the possibility of bankruptcy.