China Steps Up Efforts To Curb Price Wars In Solar Industry

MIIT holds 2nd meeting in less than 2 months with Chinese solar PV industry stakeholders
Solar PV Manufacturing, Solar Module Manufacturing
Overcapacity in the market has been distorting the solar PV manufacturing industry in China, with record low prices eating away profits, something the Chinese regulators are now keen to stop. (Illustrative Photo; Photo Credit: IM Imagery/Shutterstock.com)
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Key Takeaways
  • China’s MIIT recently organized another high-level meeting with the solar PV industry stakeholders, as the government takes a keen interest in curbing damaging price wars  

  • The meeting focused on bringing down disorderly competition and phasing out outdated capacity to ensure fair competition  

  • The government also wants the industry to enforce quality standards, prevent IP violations, and strengthen industry self-regulation with innovation and safety standards 

China’s Ministry of Industry and Information Technology (MIIT) recently held another round of talks with the country’s solar PV manufacturing players, its 2nd such meeting with the industry in less than 2 months. The government is stepping up efforts to curb overcapacity-driven price wars that have long been squeezing companies’ profits across the supply chain.  

This meeting comes on the heels of a similar one held by MIIT on July 3, 2025, attended by representatives from some big names, including TrinaSolar, JinkoSolar, LONGi, TCL TZE, Sungrow, JA Solar, Huasun, Daqo New Energy, Chint, and AIKO, among others (see China Solar PV News Snippets).  

The latest round on August 19, 2025, with stakeholders from solar PV manufacturing and power generation companies and the China Photovoltaic Industry Association (CPIA) had other state agencies in attendance as well. These include the Ministry of Social Affairs, the National Development and Reform Commission (NDRC), and the National Energy Administration (NEA), among others. 

In a brief statement after the meeting, MIIT said that it urged all stakeholders to ensure fair competition for the PV industry’s sustainable growth with the following measures: 

  • Strengthen industry regulation: Strengthen investment management for industrial PV projects and promote orderly withdrawal of outdated production capacity through market-oriented and legal approaches. 

  • Curb low-price, disorderly competition: Improve price monitoring and product pricing mechanisms, and crack down on illegal and irregular practices such as selling below cost and false marketing. 

  • Standardize product quality: Combat practices such as lowering quality control, falsely labeling product power, and infringing intellectual property rights. 

  • Support industry self-regulation: Leverage the role of industry associations and promote fair competition and orderly development, and focus on innovation, quality and safety standards. 

While concrete steps are yet to be disclosed despite the 2 high-level meetings, rumor has it that industry consolidation may be on the cards. Industry insiders suggest that big corporations are being nudged towards buying out smaller corporations with outdated technology. This measure is aimed at expediting the phase-out of old manufacturing lines, cutting competition while using the infrastructure to build newer lines for high-efficiency products. 

Nonetheless, these are speculations at best, as there is no official word from the ministry or the industry so far. 

Local news portal Yicai Global also reported that the firms that participated in the MIIT meeting signed non-disclosure agreements to maintain confidentiality till official announcements are made. Several polycrystalline silicon producers have also reached a preliminary agreement to cut output and control operations and sales volumes. 

Meanwhile, the government continues to insist on quality and innovation as competition grows, and local industrial manufacturing efforts gain traction elsewhere in the world. Recently, MIIT also announced green finance guidelines to promote green manufacturing, and also initiated energy efficiency measures for 41 polysilicon manufacturers (see China Solar PV News Snippets).  

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