China's Solar Industry Faces New Challenges

China has solidified its dominance in the global solar industry, accounting for 80% of solar panel production and controlling every stage of the manufacturing process. This supremacy is fueled by over $50 billion in state investments from 2011 to 2022, access to cheap materials, and a highly skilled labor force. However, this rapid expansion has raised concerns among Western countries, prompting the U.S. to double tariffs on Chinese imports and the EU to investigate potential subsidies. While China's solar production exceeds that of all other countries combined, it faces challenges from an oversupply that drives down prices and trade measures that hinder exports. Looking ahead, China aims to enhance its renewable energy capacity significantly, despite expectations that the growth rate of solar installations may slow. The ongoing price war domestically and rising international tensions pose new challenges for the industry.