Chinese solar panel manufacturers are experiencing significant financial losses in the first half of the year, primarily driven by overproduction and a supply glut within the market. This downturn is exacerbated by ongoing trade restrictions imposed by the U.S., prompting calls from the Chinese government for producers to reduce outdated production capacity.
Producers reel from supply glut and U.S. trade curbs. Solar panels on the outskirts of Quzhou City in July 2025. The Chinese government has urged producers to shut down outdated capacity. Major Chinese solar panel makers posted huge losses in the first half of the year due to production overcapacity, as industry players face mounting pressure to cut output amid a U.S. crackdown.