China’s solar industry is grappling with overcapacity and plummeting prices, prompting leading manufacturers to seek strategies reminiscent of the Organization of the Petroleum Exporting Countries (OPEC) to stabilize the market. In a recent move, major Chinese solar companies have agreed to coordinate production levels to address the supply-demand imbalance that has led to significant financial losses across the sector.
This initiative emerges amid escalating geopolitical tensions and a slowdown in global demand, factors that have intensified the challenges faced by China’s photovoltaic (PV) manufacturers. The industry’s rapid expansion, fueled by substantial investments and state support, has resulted in a saturated market where supply far exceeds demand, causing a sharp decline in product prices and profit margins.
