The Economist.
Hello, Mike Bird here, co-host of Money Talks, our weekly podcast on markets, the economy and business.
Welcome to Editor's Picks.
We've chosen an article from the latest edition of The Economist, which we very much hope you'll enjoy.
As America's war on Iran roils energy markets, China's clean energy companies would be expected to be cashing in.
The country makes over 80% of the world's solar panels, churning them out in vast quantities.
Thanks to such efforts, renewable sources generated more electricity than coal last year around the world.
Yet China's solar industry, though world-beating, is in trouble,
and the boost from the war has not been enough to steady it.
China's solar exports have enjoyed a surge since the bombing began,
but that will be small cheer to its companies as they face three daunting problems.
Domestic demand for their products is falling for the first time in decades because the country's power grids,
far and away the biggest market for solar panels, have become overloaded with the things.
Solar panel supply, meanwhile, is overabundant because of years of splashy investment in factories.
And even while the war is helping solar sales in Southeast Asia and Africa,
protectionism has been on the rise in the bigger Western markets.
These problems converge at an ugly time.
Most companies have been running at a loss since 2024 because of brutal price wars.
Bankruptcies are mounting.
After experiencing blistering growth, the world's solar factory now faces a reckoning.