The European Union depends on solar energy to achieve its climate goals. But China represents a major challenge for the domestic solar market.

The EU must act to avoid being lost in international competition. Forward-looking industrial solar policy must move beyond potentially counterproductive protectionist measures and instead focus on promoting innovation, new product development and local economic opportunities. A domestic solar production sector could not only improve the EU's long-term energy security, but also mitigate vulnerabilities related to global supply chain disruptions. There are several options for securing a competitive European solar industry in the long term.