China’s renewable energy and electric vehicle (EV) industries, once celebrated for their rapid expansion, are experiencing a marked slowdown in 2025, according to recent data from the National Bureau of Statistics. The chart illustrates a sharp rise in both solar cell production and new energy vehicle output between 2021 and 2024, followed by a downturn this year.
Solar cell production, measured in billions of units, expanded steadily from 2021 through 2024, reflecting strong domestic policies promoting renewable energy deployment and rising global demand for solar technology. The industry reached its peak in early 2025 but has since experienced a modest contraction. This may be attributed to maturing markets, overcapacity risks, and shifts in government priorities.
The NEV sector—tracked in tens of thousands of units—experienced a more volatile but overall steep growth trajectory from 2022 onward. Production surged as subsidies and incentives fueled consumer adoption and manufacturer expansion. However, 2025 has seen a pronounced decline after reaching record highs, likely driven by supply chain adjustments, reduced subsidies, and seasonal market fluctuations.
China’s “anti-involution” campaign, aimed at curbing redundant competition and encouraging sustainable growth, has played a key role in tempering output. This policy seeks to prevent excessive production that leads to oversupply and price wars, particularly in strategic sectors like clean energy. Seasonal factors, including variable demand cycles and raw material availability, have also contributed to the slowdown.
The moderation in growth does not necessarily indicate long-term stagnation. Instead, it may reflect a strategic recalibration by the Chinese government and industries to ensure more balanced development. For global markets, this slowdown could temporarily ease supply pressures, stabilize pricing, and encourage innovation in efficiency rather than sheer production volume.
