In a clear example of the catastrophic consequences of central planning, China's solar manufacturers built new factories at a fever pitch between 2020 and 2023 as the state redirected resources from the sinking property sector to what it used to call the "new three" growth industries: solar panels, electric cars and batteries. While Beijing has not said when or how it will act, a source with direct knowledge of the matter told Reuters it was determined to focus on the issue before the end of the current five-year plan this year. Officials in eastern China's Anhui province, a manufacturing hub, told solar company executives in June to stop adding new manufacturing and shut production lines operating at under 30% capacity, according to two industry sources who declined to be identified due to the sensitivity of the matter.
Author: OilPrice.com
Published at: 2025-08-06 22:00:00
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