China’s solar industry woes may be reaching a tipping point

Chinese solar panel makers have just experienced a bloody earnings season, but there are early signs that the massive order glut plaguing the industry may be starting to ease.

Longi Green Energy Technology Co. and five other leading solar companies posted a combined $2 billion in losses in the first half of the year after a factory-building frenzy over the past few years created excess capacity, driving prices to record lows. Some smaller companies have already been forced to restructure, while rising trade tensions with the U.S. and Europe could threaten exports.