China is urging the solar energy industry to collaborate to address the overcapacity crisis, proposing measures such as production control and industry standardization.

Chinese authorities have called for 'concerted efforts' from the solar energy industry to address the severe overcapacity crisis, in the context of an intense price war. Beijing is proposing measures such as controlling production capacity, establishing industry standards, enforcing pricing rules, and encouraging mergers. China produces over 80% of the world's solar panel components but is facing overcapacity caused by domestic competition. A recent meeting between government institutions and major energy producers highlighted the need for coordination to combat overproduction. Additionally, external markets, such as the USA and the European Union, are imposing restrictions on solar products from China, complicating the situation. Analysts suggest that international conflicts could accelerate the transition to renewable energy, but Chinese manufacturers warn that an increase in global demand will not solve the overcapacity issue.