ABSTRACT Shortwave radiation is an influential driver of global hydrological cycle, as its variation will alter evapotranspiration (ET). While climate change discussion extensively examined ET response to temperature, wind speed and land use/cover variations, little is known about the contribution of shortwave radiation balance on ET partly because of data availability. In this study, we applied the newly-released Global LAnd Surface Satellite (GLASS) products to detect changes in shortwave radiation and albedo for 2003–2018 over China, and quantified their contributions on potential evapotranspiration (PET) which is the upper limit of ET and generally the basis to estimate it. The results showed that downward shortwave radiation declined, together with a slight decrease in albedo, causing a decrease of net shortwave radiation. While climate change affected PET, the decreased net shortwave radiation reduced PET during the period. We identified a hotspot area in the north China plain that is one of the main agricultural production regions, as the radiation balance induced a contrasting effect on PET for the warm and the cold seasons. Our study indicates that it is important to consider shortwave radiation balance when estimating PET and ET to make reliable evaluation of climate change on hydrological cycle and ecosystem response.