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China’s Solar Sector in Crisis: 87,000 Jobs Cut Amid Price War and Overcapacity

China’s solar manufacturing industry, once the cornerstone of its clean energy push, is facing a significant crisis. In 2024, the country’s top five solar panel manufacturers—Longi Green Energy, Trina Solar, Jinko Solar, JA Solar, and Tongwei—cut approximately 87,000 jobs, amounting to a 31% reduction in workforce. The job cuts are due to falling panel prices, industry overcapacity, and heavy financial losses. With China producing nearly twice the number of solar panels the world consumes, the sector is experiencing an intense supply glut.

The crisis escalated between late 2023 and mid-2025, with over 40 solar firms going bankrupt, delisted, or acquired. Aggressive overexpansion between 2020 and 2023—spurred by Beijing’s push to develop solar, EVs, and batteries—has resulted in a destructive price war. U.S. tariffs on Chinese solar operations in Southeast Asia have worsened profit margins, and industry-wide losses reached $60 billion in 2024 alone.

In response, Beijing is considering intervention, proposing a 50 billion yuan rescue fund and encouraging consolidation and capacity shutdowns. Polysilicon prices rose 70% in July after top producers hinted at forming a cartel-like alliance. Despite central efforts, local governments resist cuts due to employment and economic concerns. Analysts warn that 20–30% of capacity must be shut for the sector to recover.