> it'd spark a frenzy of activity and demand for locally produced replacements
Now you're just being funny. The reason Chinese solar outcompeted European solar is because China can produce at a lower cost. Yeah, Germany could theoretically produce solar panels in required quantities. However, the price is going to be higher. Which means electricity is going to be more expensive. And expensive electricity is one of the problems for the German industry. Let's not forget that many enterprises will simply not survive while the solar production is ramping up.
The reason Chinese solar outcompeted European solar is partially that China has real lower costs, but was more because China had way way way more appetite for massive subsidies to dominate the market.
They took over the solar market from Germany after Germany foolishly stopped subsidizing it and almsot overnight killed the thriving domestic solar industry.
Chinas solar panels are almost surely being sold internationally for less than they cost to make. If China stopped selling them and domestic producers sprang back up using techniques they've learned from the ongoing solar panel 'recycling' programs, the domestic solar panels would surely be a lot more expensive than Chinese panels, but they'd also almost certainly be cheaper than fossil fuels, and would find a place in the market.
Besides, the cost of panels isn't even the expensive part of solar installations anymore. The expensive part is the land, grid connections, and installation labour.