China New Energy Industry Faces Intensifying Competition in 2026
China New Energy industry is entering a critical adjustment phase. As 2026 approaches, competition across China’s renewable energy sector is becoming more intense. At the same time, market expectations are shifting rapidly.
On February 5, Trina Solar and GCL Integration released announcements related to space-based photovoltaic business.
However, both companies clarified that they currently have no commercial cooperation in this field.
Trina Solar stated that it has not cooperated with SpaceX and has no confirmed orders or revenue related to space photovoltaic projects.
Meanwhile, GCL Integration also confirmed that it has not obtained any orders in the space photovoltaic segment.
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Market Fluctuations Highlight Industry Pressure
Earlier, on February 4, space photovoltaic-related stocks surged. This rally was driven by news that a SpaceX-related team had visited several Chinese photovoltaic companies.
However, on February 5, the market quickly corrected.
As a result, multiple photovoltaic stocks fell sharply. Several companies hit daily price limits, while others dropped more than 9%. Therefore, market volatility has become a clear signal of rising uncertainty within China New Energy capital markets.
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Authorities Confirm a New Round of Deep Adjustment
Notably, from February 4 to 5, the China Photovoltaic Industry Association held a seminar in Beijing focused on the 2026 outlook.
During the meeting, Wang Shijiang from the Ministry of Industry and Information Technology stated that China New Energy industry is undergoing a new round of deep adjustment.
According to him, 2026 will be a key year for industry governance. More importantly, reducing excessive internal competition has become the top priority.
In addition, Lin Boqiang from Xiamen University explained that the adjustment ahead may be stronger than previous cycles. Therefore, weaker companies may exit the market at a faster pace.
From the supply side, policy changes will also add pressure. Starting April 1, 2026, export VAT rebates for photovoltaic products will be canceled. Consequently, supply and demand pressures together may trigger a major reshuffle in the photovoltaic industry in the second half of the year.
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Strong Growth During the 14th Five-Year Plan
Looking back, industry data shows that China New Energy sector achieved strong growth during the 14th Five-Year Plan period.
Manufacturing output exceeded RMB 1 trillion annually. Total exports surpassed USD 180 billion. Meanwhile, cumulative installed capacity exceeded 1,200 GW, and annual new installations surpassed 300 GW. Moreover, photovoltaic products were exported to more than 200 countries and regions.
In addition, application growth was particularly strong. Newly installed photovoltaic capacity during this period was 4.5 times higher than the previous five-year plan. At the same time, cumulative power generation increased by 3.6 times.
By 2025, photovoltaic power generation alone exceeded the total output of the earlier period. As a result, solar power accounted for more than 10% of national electricity generation.
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From Rapid Expansion to High-Quality Development
Despite these achievements, challenges remain. Supply-demand mismatches have not been fully resolved. As a result, many enterprises still face operational pressure.
However, China New Energy industry plays a key role in achieving carbon reduction goals. It is also one of the few sectors with full global competitiveness across the entire value chain. Therefore, the industry is now moving from rapid expansion toward high-quality development.
Earlier, on January 28, regulators emphasized that controlling excessive competition is now the core challenge for industry regulation.
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Policy Priorities for 2026 and Beyond
Looking ahead, authorities outlined four major priorities for China New Energy industry.
First, efforts will focus on reducing excessive competition through capacity control, quality supervision, and fair pricing enforcement.
Second, stricter standards will be introduced to improve product quality and protect intellectual property.
Third, innovation will be strengthened. Advanced technologies, including perovskite tandem solar cells, will receive stronger support.
Finally, international cooperation will expand, helping Chinese enterprises grow overseas in an orderly and compliant manner.
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Toward Value-Based Competition
In the next development stage, the industry will shift from price-driven competition to value-based competition.
At the policy level, this means improving the overall development environment. At the enterprise level, companies must build long-term technological advantages and strengthen industry collaboration. From a manufacturing perspective, future growth will focus on intelligent production, green energy usage, and deeper industry integration.
