China's Ministry of Industry has demanded the elimination of excess capacity in the solar energy sector. According to the ministry, manufacturers need to strengthen legislation and strive to reduce excessive competition.
According to Reuters, in August the ministry asked companies to support the healthy and stable development of the industry. They should also refrain from dumping prices resulting from product surpluses.
According to information from Financial Times, the Chinese government's concern is that overproduction can lead to problems with trade partners, as companies are trying to sell surplus products abroad.
According to financial firm Wind, in the first half of 2025, the losses of six major Chinese solar panel manufacturers doubled – 20.2 billion yuan (2.8 billion US dollars).
According to Natixis data, in 2024, Chinese factories produced 588 gigawatts of solar cells. This exceeds both domestic demand (277 gigawatts) and external demand (174 gigawatts). Nevertheless, factories operated at only 54% capacity.
90% of the world's solar cells are produced in China. Countries want to develop solar energy, but negative values and large overproduction are affecting this.
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