In 2012, China's photovoltaic(PV) industry experienced extremely difficult and turbulent year. PV's price declined sharply for the shrinking of the most important European market, seriously super abounded production capacity and overstock, which was influenced by the downturn of European macroeconomic, lowered FIT (Feed-in Tariff) standards of PV and escalating trade friction. Many enterprises were distressed by very tight cash flow in the industry down period because of radical investment and high asset-liability ratio. It is estimated that the domestic PV application market will grow rapidly in 2013. The development of distributed PV systems will be the most important field. The demands of China's PV market will boost the global market demands in 2013. The United States, Japanese and other emerging markets will remain stable growth. Breaking of cash flow will lead to suspended production for some enterprises, and capacity will gradually shrink. The balance between supply and demand in 2013 will be better than 2012. The risk of EU "double dip" still exists, so the majority of the enterprises on the main industrial chain still face uncertainty. <<