Solar panel production to be reduced in China

China's Ministry of Industry is demanding a reduction in the overproduction capacity in the solar energy sector. This was reported by Zamin.uz.

According to the ministry, manufacturers need to strengthen regulations and work to reduce excessive competition. According to Reuters, in August the ministry asked companies to help ensure the healthy and sustainable development of the industry.

They also need to stop dumping prices caused by the overproduction of products. According to Financial Times, the Chinese government is concerned that overproduction may lead to problems with commercial partners.

This situation is related to companies trying to sell excess products to foreign markets. According to financial company Wind, in the first half of 2025, losses of six major Chinese solar panel manufacturers doubled, reaching 20.2 billion yuan (2.8 billion US dollars).

According to Natixis, in 2024 Chinese factories produced 588 gigawatts of solar cells. This figure exceeded domestic demand (277 gigawatts) and foreign demand (174 gigawatts).

However, factories operated at only 54 percent capacity. More than 90 percent of the world's solar cells are produced in China.

Although countries want to develop solar energy, overproduction and low prices negatively affect the sector's sustainable growth. Thus, maintaining balance and optimizing production in China's industry is an important task.