Impact of the Middle East on China’s Solar Industry: Beijing’s Strategy to Reduce Overcapacity Faces Challenges

Due to ongoing tensions in the Middle East and rising energy prices, Beijing appears reluctant to implement ‘anti-involution’ or supply reinforcement measures in its solar industry. Analysts suggest that this reluctance has led to prolonged ‘price wars,’ even as solar manufacturers face losses. Ivan Li, Head of Asia Energy Transition Research at HSBC, stated, “Anti-involution or supply reinforcement may not be a top priority for the government…”