Analysis

Overcapacity and collapsing prices: How overcapacity also hurts China

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Published: May 22nd, 2024,
Last updated: May 30th, 2025

Rooftop solar systems in Anhui: Demand for photovoltaics is also solid in China, but the price slump jeopardizes company finances.
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The overcapacity in China’s cleantech sector is not only causing concern in the West – they are also a big problem for China. For example, the country’s photovoltaic industry could lose many companies due to the sharp price drop. In 2023, falling prices suddenly forced many companies to sell at production costs or below. This led to accusations of dumping, for example, from Brussels, and also ate into company finances.

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