🌟China’s solar industry just hit a massive structural turning point. Facing 10 consecutive quarters of corporate losses and rampant overcapacity, Beijing is stepping in with aggressive fiscal interventions that just crashed solar exports by 40%⭕
https://x.com/Frank_Stones/status/2062866872526070187?mx=2


🖋China aggressively undercut the world’s solar markets until it became a monopoly. Everyone thought falling solar panel costs reflected some sort of technological leap, and lapped up the cheap panels. But now it turns out none of this output was cost effective at these prices. And the sector has become too costly for China to support fiscally. As a result, the West’s climate agenda faces losing its Chinese subsidy. This is going to add even more cost pressure to most households and make net zero even more unachievable without making everyone significantly poorer. But I disagree that China’s monopoly position can somehow be used as statecraft. With prices normalised capitalism will revert to doing what it does best. All the Western manufacturers that China originally priced out (and who were actually innovating properly) will be back within a couple of years or less.✒️
https://x.com/izakaminska/status/2063229755126587589?mx=2

🇨🇳Ellinne