China’s SAMR has warned polysilicon manufacturers against joint actions on pricing, production, and sales that could create monopolies
Leading firms, including Tongwei, GCL, Daqo, Xinte, along with the CPIA, reportedly attended a meeting with the SAMR and were told to submit rectification plans
Producers are struggling with excess supply and falling prices, but the government wants this addressed through fair competition rather than coordination
China’s antitrust regulator, the State Administration for Market Regulation (SAMR), has come down heavily on the country’s polysilicon industry’s efforts to regulate competition by calling out monopoly risks.
The government agency recently held a meeting to discuss polysilicon manufacturers’ consolidation efforts, according to a Securities Times report. Leading Chinese manufacturers, including Tongwei, GCL, Daqo, Xinte, Asia Silicon, and Oriental Hope, along with China Photovoltaic Industry Association (CPIA), met the officials.
At the meeting, SAMR reportedly conveyed its concerns to the manufacturers and CPIA regarding their joint efforts to address overcapacity concerns by capping prices and sales volume, as creating a monopoly in the market for a select few. It has asked companies to carry out rectification work.
Previously, Reuters reported that Chinese polysilicon producers were planning an RMB 50 billion fund to acquire and shut down around 1/3rd of the production capacity and restructure part of the loss-making sector.
Notably, companies that met with SAMR along with CPIA were recently reported to have formed a joint venture called Beijing Guanghe Qiancheng Technology to tackle oversupply and competitive pricing in the industry (see Chinese Polysilicon Makers Join Hands Amid Overcapacity Concerns).
Frank Haugwitz of Apricum — The Cleantech Advisory says the involved companies and associations are required to submit rectification plans by January 20, 2026. They must not make any agreements regarding production capacity, capacity utilization ratios, production and sales volumes, or sales prices. They must never communicate or coordinate regarding prices, costs, production, and sales volume information.
Rather, they must establish internal anti-monopoly rules and conduct self-inspections of risks. Haugwitz does not see this development as surprising.
“For starters, the solar industry is not alone in having to deal with overcapacities, consequently leading to cut-throat competition, in Chinese called “involution”. If the solar industry would have succeeded, highly probable in no time other industries would have come forward with similar intentions, which would be in contrast of “free market mechanisms” long promoted by central governmental entities,” stated Haugwitz in a LinkedIn post.
The government has been proactively engaging with the solar industry to bring down disorderly competition and phase out outdated capacity to ensure fair competition (see China Steps Up Efforts To Curb Price Wars In Solar Industry).
Recently, the government also issued a document to support healthy development in the PV sector by strengthening IP protection in the industry (see China Solar PV News Snippets).