China’s Ministry of Industry and Information Technology, headquartered in Beijing, has held closed-door meetings with solar companies this week. The meetings were centered on solar cells, modules, silicon wafers, and polysilicon, where rising overcapacity has created severe financial stress across the supply chain. China’s solar industry has lost $40 billion in 2024, and leading firms were forced to cut nearly one-third of their workforce. Chinese polysilicon producers have been negotiating a ¥50 billion ($7 billion) fund to acquire and close one-third of existing production capacity. Analysts have said smaller producers and local governments were expected to resist closures, complicating consolidation efforts. Uneven demand caused by pricing reforms has intensified instability, while China’s output is nearly double global demand, requiring a 20% to 30% reduction for profitability to return.