China Solar Leaders Report Losses Amid Overcapacity and Tariffs

Jinko Solar, JA Solar Technology, and Tongwei reported deepening losses for the first half of the year, driven by structural overcapacity and weakening demand in domestic and international markets. New solar power capacity additions in China fell to 72.07 GW in the first half of the year, a sharp decline from 212.2 GW during the same period last year. This drop followed a rush to connect projects before an electricity-pricing reform took effect in June 2025.

External pressures have further strained the industry. U.S. tariffs on trade partners and a decision by the Government of China to cancel an export tax rebate for solar manufacturers in April contributed to a 21.4% decline in solar equipment exports last month. Jinko Solar noted that traditional export channels are facing a reshaping as trade barriers in overseas markets have been upgraded.

Despite these financial losses, China's total solar power capacity grew to 1,274 GW by the end of June. This figure nearly equals the country's coal-fired capacity of 1,275 GW. JA Solar Technology indicated that the industry continues to face temporary and structural overcapacity issues, though the full impact of current policies may require more time to validate.