China’s solar industry is losing money. The country is doubling down anyway. — SkimNews
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- China's solar manufacturers have built capacity to meet roughly twice global demand, according to Rhodium Group, and if all newly announced factories are built, that capacity could double again.
- Chinese solar companies announced $1.5 billion in losses in Q1 2026, extending roughly three years of continuous unprofitability, with industry giants JinkoSolar and Longi hit by slowing domestic installations, US trade barriers, and weaker global demand.
- Regional governments that have invested heavily in solar supply chains have been hesitant to trim local development, and some manufacturers even built illegal factories or produced panels without permits, according to the South China Morning Post.
- China's latest five-year plan signals continued state support for massive clean energy industries, focusing on "optimizing and upgrading" solar supply chains rather than clamping down on oversupply, per a May Rhodium report.
- The Trump administration and Congress have moved in the opposite direction, cutting back tax credits from the 2022 Inflation Reduction Act and impeding solar development on federal land, even as US producers remain heavily reliant on Chinese components.
- In May, solar panels provided more electricity in the US than coal for the first time on record, according to Ember analysis, and globally clean power sources met all new electricity demand in 2025.
- Experts quoted in the piece — including Rhodium's Hannah Pitt and German wholesaler Martin Schachinger — expect Chinese solar panel prices to remain low for the foreseeable future, making it nearly impossible for European or Indian competitors to break in without a Chinese joint venture.
Why it matters: Beijing's choice to "optimize and upgrade" rather than rightsize means the world gets a few more years of cheap Chinese panels — roughly 2x global demand already on line — accelerating decarbonization while locking the US and Europe into dependence on Chinese supply chains at the exact moment the Trump administration is pulling back its own solar incentives.
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