Over the past 15 years, China has come to dominate the global market for solar energy, with nearly every solar panel made by a Chinese company. However, the country's solar panel domestic industry is experiencing turmoil with plunging wholesale prices and companies slashing prices below their costs.
The price slashing has severely impacted China's solar companies, with stock prices of major panel makers halving in the past year. Seven large manufacturers have warned of heavy losses. Despite this, China's industrial policymaking supports solar power but allows companies to compete and face consequences.
In the automotive sector, China's ability to make vehicles surpasses its domestic market demand, leading to automakers following the solar industry's approach of cutting prices and increasing exports. This pattern shows how China adapts industrial strategies and allows firms to compete and potentially struggle.
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