Years of aggressive capacity expansion have [1]driven China's solar manufacturing sector into deep losses . Panel prices have hit their lowest levels since 2011 even as the country's installations more than doubled. Shanghai-listed Tongwei reported a 4.96 billion yuan ($693 million) net loss for the first half of 2025, widening from 3.13 billion yuan a year earlier, while Trina Solar swung to a 2.92 billion yuan loss from a prior-year profit.

Panel prices touched 8.7 cents per watt in July, forcing manufacturers to write down inventory values across the polysilicon-to-module supply chain. China installed 212.2 gigawatts of photovoltaic capacity through June, bringing total installations to 1.1 terawatts, yet supply continues outpacing demand after seven major manufacturers posted their first combined annual loss in 2024. The Ministry of Industry and Information Technology convened leading producers last week to urge shutdowns of outdated capacity, while the China Photovoltaic Industry Association pledged to tackle what it termed "involution-style" competition through strengthened self-discipline measures.



[1] https://asia.nikkei.com/business/energy/chinese-solar-makers-losses-deepen-as-industry-vows-to-end-price-war