Disclosed are a modulation strategy suitable for balancing losses of power switches in a bridge arm of a neutral point clamped three level inverter and an implementation method. The modulation strategy includes that an operation type of an inverter is determined and a corresponding modulation style is selected on the basis of a power factor (PF) angle; a corresponding modulation interval is selected according to the modulation style; and drive signals for various power switches are outputted, to balance switching losses of inner and outer sides of a bridge arm. The modulation strategy of the present disclosure enables the rational utilization of freewheeling paths to achieve a balanced distribution of losses between the inner and outer power switches of the inverter bridge within the entire PF range, thereby prolonging the service life of power electronic devices.