Foreign Media: China Calls for Industry Collaboration to Address Solar Overcapacity
China urges the solar industry to adopt "coordinated and collaborative" measures to tackle the severe issue of overcapacity. Proposals from Chinese regulatory authorities include implementing capacity controls, setting standards, facilitating mergers and acquisitions, and strengthening intellectual property protection, all aimed at promoting high-quality development in the photovoltaic sector.
Currently, China's solar production capacity far exceeds global demand, leading to increasingly fierce price wars domestically. According to data from the International Energy Agency, China produces more than 80% of the world's solar components. Intense domestic competition has resulted in oversupply, a phenomenon widely referred to within China as "involution."
Although the energy price shock triggered by the U.S.-Iran war may boost global renewable energy demand, Chinese solar manufacturers believe this is insufficient to alleviate the overcapacity crisis. Meanwhile, U.S. tariffs on Chinese solar products and the European Union’s push for supply chain diversification have further intensified export pressures.
Original Article: toutiao.com/article/1863000688267272/
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