The world's solar factory is restructuring. After three years of brutal price war, China's listed solar companies were expected to post combined losses above ¥50 billion (~$7.3 billion) for 2025, with production-line utilization down to 40-50%, reports Caixin Global.
The "anti-involution" campaign
Since late 2024, policymakers and industry bodies have pushed back against involution-style destructive competition: 33 manufacturers signed a self-discipline pact in December to coordinate output cuts, and informal price floors have been enforced across the chain. The boldest move — a ~¥50 billion ($7 billion) fund by the six largest polysilicon producers (Tongwei, GCL, Daqo, Xinte, East Hope, Asia Silicon) to buy up and idle roughly a third of national polysilicon capacity — was halted by China's antitrust regulator on January 9, 2026 over monopoly concerns (pv magazine).
What happens now
Consolidation continues the slow way: financially weaker producers exit, utilization recovers gradually, and prices firm from below. Domestic demand is also cooling — the China Photovoltaic Industry Association expects 180-240 GW of installations in 2026, down from about 315 GW — so exporters will push harder into overseas markets.
Why it matters globally
Every solar buyer on earth is exposed to this reset: it sets module prices, supplier survival odds and delivery risk for years to come. Track Chinese solar companies and Chinese manufacturers, or read our China by-the-numbers profile.
Sources: Caixin Global; pv magazine; CSIS; China Photovoltaic Industry Association.