The biofuel sector is battling cost overruns, engineering shortcomings, and a glut of biofuels. They are up to six times as expensive as fossil fuels. The oversupply in China has depressed prices elsewhere. Many biofuel companies have already declared bankruptcy. Demand for biofuels remains low, while oil consumption is rising.

Chinese solar industry is grappling with a deepening glut after production outstripped demand in recent years. Major firms reported losses as they were forced to sell below costs. An oversupply of products is unlikely to ease for up to two years. Fierce competition at home has pushed many Chinese solar companies to seek higher premiums overseas.