Chinese solar company in bankruptcy

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BEIJING, March 21 (UPI) -- The Chinese government may intervene in the bankruptcy of solar panel company Wuxi Suntech but the industry is downsizing, a government official said.

Suntech, a Chinese solar panel company with headquarters in Wuxi, declared bankruptcy this week. It's a subsidiary of Suntech Power, which is listed on the New York Stock Exchange.

An official from a bankruptcy liquidation team told China's official Xinhua news agency on background the bankruptcy was a sign of "global overcapacity."

The European Commission is investigating trade practices tied to importing solar components from China. The commission is probing complaints that solar power components from China in the European market were priced below fair market value.

Chinese-manufactured solar products account for more than half of the global market and dominate Europe in terms of exports.

Xinhua said a series of decisions from Wuxi Suntech on silicon suppliers and investments in unproven technology led to the bankruptcy.

An official with the National Development and Reform Commission said the Chinese government may be limited in any rescue effort.

"The whole photovoltaics industry is downsizing," the official said on condition of anonymity. "It is regrettable that the company went bankrupt but it is a common market phenomenon."