China's Photovoltaic Supply Chain Faces H1 Headwinds; Production and Installations Decline

According to the China Photovoltaic Industry Association, the photovoltaic supply chain saw production declines, weakening prices, and significantly lower new installations in the first half of 2026, the industry body said on July 23 at its industry review conference. The association noted that mandatory national standards are accelerating the elimination of inefficient capacity, reshaping competitive dynamics in the sector.

Industry experts highlighted a shift in competition from price-based strategies and scale expansion toward value-driven competition centered on technology, quality, and differentiation. The sector is also seeing new potential in algorithm-electricity coordination as data center and AI computing power demand grows.